CompoSecure initiated with a Buy at Berenberg

Berenberg initiated coverage of CompoSecure (CMPO) with a Buy rating and $13 price target. The renewal of CompoSecure’s contract with JPMorgan (JPM) could serve as a catalyst for the stock and remove a near-term overhang, says the analyst, who notes that the company derived more than 67% of its 2022 net sales from American Express (AXP) and JPMorgan. The contract with JPMorgan is up for renewal on December 31, 2023, and the firm expects the company to announce an extension “well in advance of that date,” the analyst tells investors.