Compass Diversified Holdings (CODI) Stock AnalysisCODIStock AnalysisCompass Diversified Holdings

Compass Diversified Holdings is engaged in owning and managing a diverse set of defensible, middle-market businesses across the branded consumer, industrial, healthcare, and critical outsourced services sectors. The Company categorizes its businesses into two separate groups: branded consumer businesses and industrial businesses. It operates through eight segments: 5.11 Acquisition Corp. (5.11), Boa Holdings Inc. (BOA), Relentless Topco, Inc. (PrimaLoft), THP Topco, Inc. (The Honey Pot Co. or THP), CBCP Products, LLC (Velocity Outdoor or Velocity), AMTAC Holdings, LLC (Arnold), FFI Compass, Inc. (Altor Solutions or Altor). 5.11 is a provider of purpose-built technical apparel and gear for law enforcement, firefighters, EMS, and military special operations as well as outdoor and adventure enthusiasts. PrimaLoft is a provider of branded, high-performance synthetic insulation and materials used primarily in consumer outerwear, and accessories. It operates in the Financials sector (HOUSEHOLD FURNITURE industry).

Compass Diversified Holdings appears to be a good buy right now due to its recent strong Q2 performance, with adjusted EBITDA growth of 12.6% year-over-year and a significant improvement in gross margin to 41.81%. Additionally, the stock is currently priced at $11.45, which is below the analyst price target of $15, suggesting an upside potential of approximately 31%. The main risk is its recent negative earnings per share of -0.13, which reflects ongoing financial challenges, but the overall trend indicates a recovery.

7 analysts cover CODI: 6 rate it Buy, 1 Hold and 0 Sell. The average price target is 14.00.