Benchmark Hikes CompoSecure (CMPO) Price Target to $24 on Arculus Crypto Upgrade

Wall Street dealer Benchmark has raised its worth goal on NYSE-listed CompoSecure (CMPO) to $24 from $17, citing operational momentum, rising M&A optionality, and a key product improve from its Arculus crypto pockets unit.

The inventory was 2.7% larger in early buying and selling, round $21.

While traders have been awaiting a transformational acquisition, CMPO shares have already surged about 61% year-to-date, outpacing the S&P 500, pushed 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 buying and selling platform, as proof of the corporate’s strategic embrace of digital belongings.

By integrating with a number of liquidity venues and launching a sensible order router, Arculus has enhanced its chilly storage wallets to assist environment friendly buying and selling alongside safe custody.

The dealer sees this positioning as a manner to distinguish Arculus in a crowded market, interesting particularly to enterprise customers who need custody, liquidity, and execution in a single product.

The integration of superior buying and selling instruments alerts a shift from primary chilly storage to a extra dynamic providing. According to Benchmark, this places Arculus in a stronger aggressive place towards each conventional pockets suppliers and exchanges with in-house custody-lite options.

The dealer reiterated its purchase ranking on the inventory, and projected FY26 adjusted EBITDA of $174.8 million on income of $502.9 million. It views CMPO’s valuation as compelling, significantly if crypto adoption accelerates and boosts demand for Arculus’s upgraded platform.

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