Snapshot
Compass Diversified (NYSE: CODI), a private equity investment vehicle, reported stronger than expected 1Q21 results, raised full year 2021 guidance, and hinted at a potential change in its tax structure.
In 1Q, revenue
Compass Diversified Offers Two Tangible Catalysts For Stock Appreciation In 2021
Summary
- Led by its consumer businesses, CODI reported a terrific 1Q and raised 2021 guidance.
- 1Q revenue and adjusted EBITDA exceeded expectations by 14% and 17%, respectively.
- We are now targeting adjusted EBITDA of $325 million for 2021. As a result, our fair value estimate rises to $26 per share.
- Two meaningful catalysts have the potential to drive the stock higher over the next 6 months.
With a value lens, Hemlock Partners ("Hemlock") is dedicated to uncovering the market's best investment opportunities. Our team brings a common-sense approach to a marketplace which often trades on an irrational greed-and-fear cycle. We view this predictable pattern not as a challenge, but an opportunity. Hemlock's Asset-Rich Investment Service is designed specifically for individual investors with a long-term investment horizon. The cornerstone of the service is to acquire solid companies at bargain prices. These golden occurrences arise when a company’s share price trades at a dramatic discount to the firm’s intrinsic value, and even better, below its liquidation value. From time to time, Hemlock will also selectively short a security which appears dramatically mispriced given our proprietary research and expertise. Opinions expressed here are reflective of the Hemlock team as a whole.
Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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