Benchmark sees more upside to CompoSecure amid Arculus’s evolution into full crypto trading platform
Quick Take CompoSecure’s turnaround under Resolute Holdings and renewed focus on digital assets have helped lift its stock more than 60% this year.
Benchmark reiterated a "buy" rating for NYSE-listed CompoSecure (ticker CMPO) and raised its price target to $24, implying roughly 16% upside from current levels.
In a Wednesday note, Benchmark senior equity research analyst Mark Palmer said CompoSecure’s Arculus cold wallet business is evolving "from a security product into a full trading platform" after integrating with N. Exchange and launching a smart order router that lets users trade crypto directly from cold storage at competitive execution prices.
Palmer said the update puts Arculus at the intersection of self-custody and liquidity access, giving it a stronger edge in a crowded crypto wallet market. He also highlighted steady operational improvements and margin expansion under majority owner Resolute Holdings as key drivers of the company’s recent performance.
Benchmark now sees stronger top and bottom-line growth ahead, pointing to rising margins and the potential for Arculus’s trading rollout to add a new stream of revenue. The analyst lifted FY26 revenue estimate from $496.5 million to $502.9 million, while its adjusted EBITDA estimate lifted from $163.6 million to $174.8 million.
CompoSecure is best known for producing metal payment cards and powering hardware-based crypto solutions under its Arculus brand. Earlier this year, the firm partnered with MetaMask and Baanx to launch the MetaMask Metal Card, which allows users to make instant tap-to-pay transactions directly from self-custody wallets without converting to fiat or relying on centralized exchanges.
CompoSecure shares closed for trading at $20.49, up 62% year to date, outpacing the S&P 500’s roughly 13% rise.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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