Lake Street analyst Jacob Stephan initiated coverage of CompoSecure with a Buy rating and $12 price target. The analyst says CompoSecure is the “overwhelming market share leader” in metal payment card manufacturing with 80%-plus market share. The firm believes the company has an opportunity to expand its share with other top 10 card issuers and grow card shipments in line with industry growth estimates at 12% year-over-year. Lake “conservatively” estimates CompoSecure can generate $500M in revenue just in the metal card business in 2026. It thinks the shares offer value to investors looking for a growing market share leader in metal card manufacturing with 50%-plus gross margins, mid-30% EBITDA margins, and strong free cash flow generation.
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