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Compass Diversified rating placed under review at Raymond James

Raymond James placed its Market Perform rating on Compass Diversified (CODI) under review after the company announced an internal investigation of subsidiary Lugano’s non-company financing and inventory practices. Compass expected to need to restate fiscal 2024 financials and earlier periods may also be unreliable, the analyst tells investors in a research note. “Such financials are obviously a core underpinning of our financial models and rating,” contends the firm.

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