Jefferies has revised its rating for Compass Diversified (CODI, Financial), shifting it from a Buy to a Hold. The financial firm has also adjusted the stock's target price to $7.30, significantly reduced from the previous $28. This change comes as the company faces "material uncertainty" due to an ongoing investigation into its Lugano subsidiary. The former CEO of Lugano is implicated in unauthorized third-party funding arrangements and questionable inventory valuations, which have raised red flags.
Jefferies' new price target assumes no value for the Lugano division, aligning with the company's management suggestions, given concerns about significant inventory misstatements and an anticipated protracted recovery. The firm's cautious approach reflects the potential challenges CODI might face as it navigates through these issues.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Compass Diversified Holdings (CODI, Financial) is $26.67 with a high estimate of $34.00 and a low estimate of $18.00. The average target implies an upside of 266.80% from the current price of $7.27. More detailed estimate data can be found on the Compass Diversified Holdings (CODI) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Compass Diversified Holdings's (CODI, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Compass Diversified Holdings (CODI, Financial) in one year is $27.40, suggesting a upside of 276.89% from the current price of $7.27. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Compass Diversified Holdings (CODI) Summary page.
