Wall Street broker Benchmark has raised its price target on NYSE-listed CompoSecure (CMPO) to $24 from $17, citing operational momentum, growing M&A optionality and a key product upgrade to its Arculus crypto wallet unit.
The stock rose 2.7% in early trading, around $21.
While investors were hoping for a transformative acquisition, CMPO shares are already up about 61% so far this year, outperforming the S&P 500, driven by better execution since Resolute Holdings acquired a majority stake in September 2024, analyst Mark Palmer wrote.
Palmer pointed to Arculus’ new partnership with N. Exchange, a non-custodial crypto trading platform, as evidence of the company’s strategic embrace of digital assets.
By integrating with multiple liquidity venues and launching a smart order router, Arculus has enhanced its cold storage wallets to support efficient trading along with secure custody.
The broker sees this positioning as a way to distinguish Arculus in a crowded market, especially appealing to enterprise users who want custody, liquidity and execution in a single product.
The integration of advanced business tools indicates a shift from basic cold storage to a more dynamic offering. According to Benchmark, this puts Arculus in a stronger competitive position against traditional wallet providers and exchanges with in-house custody-light solutions.
The brokerage reiterated its buy rating on the stock and projected FY26 adjusted EBITDA of $174.8 million on revenue of $502.9 million. He finds CMPO’s valuation compelling, especially if cryptocurrency adoption accelerates and demand for Arculus’ improved platform increases.
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