CompoSecure initiated with a Buy at Benchmark

Benchmark initiated coverage of CompoSecure (CMPO) with a Buy rating and $7 price target. The stock’s valuation does not reflect its dominant market position in the growing metal payment card market, as the company’s metal card payment business generated more than 67% of its 2022 net sales from American Express (AXP), 35%, and JPMorgan Chase (JPM), 32.6%, with which it has maintained relationships since 2003 and 2008, respectively, the analyst tells investors in a research note. The firm adds that it expects CompoSecure’s net sales will reaccelerate in FY24.