CPI Card Group initiated with a Buy at Roth MKM

Roth MKM initiated coverage of CPI Card Group with a Buy rating and $40 price target. CPI provides payment card solutions for large and small to mid-sized issuers, the analyst tells investors in a research note. The firm expects the period of issuer inventory digestion to clear by the second half of 2024, lifting the company’s outlook. CPI’s long-term organic growth rate should exceed 10% market growth on mix and share gains leveraging a 50% capacity expansion, says Roth.