Wall Street broker Benchmark raised its price target on NYSE-listed CompoSecure (CMPO) from $17 to $24, citing operational momentum, increased M&A options and a key product upgrade to its Arculus crypto wallet unit.
The stock was up 2.7% in early trading, around $21.
While investors awaited a transformational acquisition, CMPO shares have already surged about 61% year to date, outperforming the S&P 500, on better execution since Resolute Holdings took a majority stake in September 2024, analyst Mark Palmer wrote.
Palmer pointed to Arculus’ new partnership with N. Exchange, a non-custodial cryptocurrency trading platform, as evidence of the company’s strategic adoption 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 as well as secure custody.
The broker sees this positioning as a way to distinguish Arculus in a crowded market, particularly appealing to professional users who want custody, liquidity and execution in a single product.
The integration of advanced trading tools marks the move 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 lightweight in-house custody solutions.
The broker reiterated its Buy rating on the stock and forecast FY26 adjusted EBITDA of $174.8 million on revenue of $502.9 million. He views CMPO’s valuation as compelling, particularly if crypto adoption accelerates and drives demand for Arculus’ enhanced platform.
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