Jefferies Downgrades Compass Diversified (CODI) to Hold

Jefferies analyst Matthew Hurwit downgraded Compass Diversified (NYSE: CODI) from Buy to Hold with a price target of $7.30 (from $28.00).

The analyst comments: "We downgrade CODI to Hold given material uncertainty from the ongoing investigation disclosed at the Lugano subsidiary. Lugano's former CEO engaged in material unauthorized third-party funding arrangements and questionable inventory valuations. Our CODI price target of $7.30 is based on a SOTP and conservatively assigns zero value to Lugano, as recommended by management, given material overstatement of inventory and a lengthy recovery process."

For an analyst ratings summary and ratings history on Compass Diversified click here. For more ratings news on Compass Diversified click here.

Shares of Compass Diversified closed at $7.16 yesterday.

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