B. Riley Raises its Price Target on Compass Diversified (CODI) to $10.50

On April 6, 2026, B. Riley expert Timothy D’Agostino raised the terms people connected Compass Diversified (NYSE:CODI) to $10.50 from $8 and maintained a Neutral rating, calling the merchantability of the Sterno subsidiary “positive” portion noting the steadfast is waiting connected further imaginable divestitures.

On March 29, 2026, Compass Diversified agreed to merchantability the foodservice concern of its majority-owned subsidiary, SternoCandleLamp Holdings, to Archer Foodservice Partners for an endeavor worth of $292.5M, taxable to moving superior and different adjustments. The concern generated astir $30.3M successful adjusted EBITDA successful 2025, including shared overhead that volition stay post-transaction. The institution plans to usage nett proceeds to repay outstanding indebtedness and expects its elder secured nett leverage ratio to autumn beneath 1.0x pursuing closing. Compass Diversified besides expects to debar fees tied to excess leverage beyond June 30. After the sale, the institution volition clasp Sterno’s location fragrance segment, which volition proceed operating arsenic Rimports, a Provo, Utah-based shaper and distributor of branded and private-label location fragrance products. The transaction is taxable to customary conditions and regulatory approvals and is expected to adjacent successful May 2026.

Earlier successful March, Raymond James re-initiated sum of Compass Diversified (NYSE:CODI) with a Market Perform standing and nary terms people pursuing a restatement tied to accounting unreliability astatine the Lugano subsidiary. The steadfast said determination “remains overmuch enactment to beryllium done” arsenic the institution proceeds with divestitures and works to instrumentality to compliance with its recognition agreements.

Compass Diversified (NYSE:CODI) is an concern holding institution focused connected investing successful concern and branded user businesses crossed aggregate sectors.

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