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 from its Arculus crypto wallet unit.
The stock was 2.7% higher in early trading, around $21.
While investors have been awaiting a transformational acquisition, CMPO shares have already surged about 61% year-to-date, outpacing the S&P 500, driven by improved execution since Resolute Holdings took a majority stake in September 2024, wrote analyst Mark Palmer.
Palmer pointed to Arculus’s 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 alongside secure custody.
The broker sees this positioning as a way to distinguish Arculus in a crowded market, appealing especially to enterprise users who want custody, liquidity, and execution in a single product.
The integration of advanced trading tools signals a shift from basic cold storage to a more dynamic offering. According to Benchmark, this puts Arculus in a stronger competitive position against both traditional wallet providers and exchanges with in-house custody-lite solutions.
The broker reiterated its buy rating on the stock, and projected FY26 adjusted EBITDA of $174.8 million on revenue of $502.9 million. It views CMPO’s valuation as compelling, particularly if crypto adoption accelerates and boosts demand for Arculus’s upgraded platform.
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