Wall Street brokerage Benchmark raised its price target on New York Stock Exchange-listed CompoSecure (CMPO) from $17 to $24, citing business momentum, expanded M&A options, and major product upgrades for its cryptocurrency wallet unit Arcurus.
Shares were trading around $21, up 2.7% in early trading.
While investors look forward to innovative acquisitions, improved execution has already pushed CMPO stock up about 61% year-to-date, outperforming the S&P 500 since Resolute Holdings acquired a majority stake in September 2024, analyst Mark Palmer wrote.
Palmer cited Arculus’ new partnership with N.Exchange, a non-custodial cryptocurrency trading platform, as evidence of the company’s strategic embrace of digital assets.
By integrating with multiple liquidity exchanges and launching a smart order router, Arculus has enhanced its cold storage wallet to support efficient trading alongside secure storage.
The broker believes this positioning is a way to differentiate Arculus in a crowded market, making it particularly appealing to enterprise users looking for storage, liquidity and execution in a single product.
The integration of advanced trading tools marks the transition from basic cold storage to more dynamic products. According to Benchmark, this gives Arculus a stronger competitive edge against both traditional wallet providers and exchanges with in-house custody solutions.
The broker reiterated a buy rating on the stock and expected FY26 adjusted EBITDA of $174.8 million and revenue of $502.9 million. We believe CMPO’s valuation is compelling, especially if cryptocurrency adoption accelerates and demand for Arculus’ upgraded platform increases.
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