CPI Card Group initiated with Buy on card growth at B. Riley

B. Riley analyst Hal Goetsch last night initiated coverage of CPI Card Group with a Buy rating and $31 price target. CPI is a scale producer of payment cards and other card-related payment services to card-issuing banks, nonbanks, and fintechs of all sizes, the analyst tells investors in a research note. The firm says the company has produced high-single-digit to low-double-digit growth over the past 10 years, buoyed by the secular growth in card-based payments. While CPI is facing difficult compares in 2023 as it laps strong growth trends exiting the pandemic, modest growth should resume in 2024 as channel inventories with bank customers normalize, setting the stage for better operating performance, free cash flow conversion, and de-leveraging, contends Riley.