Jefferies Believes CODI Still Has Room to Grow

By Jason Carr

In a report released yesterday, John Hecht from Jefferies reiterated a Buy rating on Compass Diversified Holdings (NYSE: CODI), with a price target of $22. The company’s shares closed yesterday at $16.70, close to its 52-week high of $18.10.

According to, Hecht is a top 100 analyst with an average return of 16.1% and a 77.3% success rate. Hecht covers the Financial sector, focusing on stocks such as Consumer Portfolio Services, Discover Financial Services, and Pennantpark Investment Corp.

Compass Diversified Holdings has an analyst consensus of Moderate Buy, with a price target consensus of $22.

Based on Compass Diversified Holdings’ latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $319 million and GAAP net loss of $6.93 million. In comparison, last year the company earned revenue of $218 million and had a GAAP net loss of $18.64 million.

Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CODI in relation to earlier this year. Earlier this month, Alan Offenberg, an Insider at CODI bought 150,000 shares for a total of $2,495,060.

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Compass Diversified Holdings, Inc is a traded fund that invests in small and middle market companies located in North America. The fund focuses on companies with a minimum EBITDA of $10 million, highly defensible positions in their markets, strong management teams, and growth potential. It targets companies operating in the fields of industrial & branded consumer industries. It acquires a controlling interest and provides financing in the form of debt & equity for acquisitions with a transaction size of $75 – $500 million.