CompoSecure stock surges 8.9% as Husky merger nears final approval
CompoSecure’s share price has jumped 8.9% to $22.17, with trading volumes rising 44% above average. The surge comes as the company’s merger with Husky Technologies moves closer to completion. Analysts have responded by lifting price targets, with some now valuing the stock as high as $32.00.
The merger with Husky Technologies remains the key driver behind CompoSecure’s stock rally. Shareholders have already approved the deal, which will form a diversified industrial group worth around $7.4 billion. Final regulatory approvals are still pending, and the exact closing date—expected later this month—could trigger further market movement.
Recent financial results have added to investor confidence. In the last reporting period, CompoSecure’s earnings per share reached $0.29, beating expectations by over 15%. Revenue climbed to $120.9 million, fueled by 31% organic growth. Gross margins also improved, rising from 51.7% to approximately 59%, giving the company more flexibility for future investments. Analysts have adjusted their forecasts upward in response. Benchmark set the highest target at $32.00, citing strong potential for margin expansion. TD Cowen raised its target from $22.00 to $26.00, while Lake Street Capital Markets maintained a $25.00 target, pointing to better free cash flow. Needham & Company also increased its outlook, lifting its target from around $15 to $18 per share, based on robust demand for premium metal payment cards and improving margins. Looking ahead, management expects non-GAAP revenue of $510 million and pro forma adjusted EBITDA of $190 million for 2026. These projections reflect anticipated synergies from the Husky acquisition and continued strength in core operations.
The merger’s completion is now the next major milestone for CompoSecure. With a consensus ‘Buy’ rating and an average price target of $25.50, investors are watching for final regulatory clearance. The deal’s closure could further influence trading activity in the coming weeks.
