Benchmark Raises CompoSecure Price Target to $24 on Arculus Crypto Upgrade

Wall Street broker Benchmark has raised its price target for CompoSecure (NYSE: CMPO) to $24 from $17, citing strong operational momentum, potential M&A opportunities, and a key product upgrade from its Arculus crypto wallet unit. CMPO shares rose 2.7% in early trading, trading around $21.

The stock has gained roughly 61% year-to-date, outpacing the S&P 500, driven by improved execution following Resolute Holdings’ majority stake acquisition in September 2024, according to analyst Mark Palmer.

Palmer highlighted Arculus’s new partnership with N. Exchange, a non-custodial crypto trading platform, as a key strategic move into digital assets. By integrating multiple liquidity venues and launching a smart order router, Arculus has enhanced its cold storage wallets to support secure, efficient trading.

Benchmark sees the upgrade positioning Arculus as a differentiated solution in a crowded market, appealing to enterprise clients seeking custody, liquidity, and execution in a single platform. The firm noted that these advanced trading tools mark a shift from basic cold storage to a more dynamic offering, strengthening Arculus’s competitive edge against traditional wallet providers and exchanges with in-house custody-lite solutions.

The broker maintained its buy rating, projecting FY26 adjusted EBITDA of $174.8 million on revenue of $502.9 million. Benchmark views CMPO’s valuation as attractive, particularly if crypto adoption accelerates, driving demand for the upgraded Arculus platform.