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

Compass Diversified (NYSE:CODI) is one of the 8 Best Holding Company Stocks to Invest In Now.

On April 6, 2026, B. Riley analyst Timothy D’Agostino raised the price target on Compass Diversified (NYSE:CODI) to $10.50 from $8 and maintained a Neutral rating, calling the sale of the Sterno subsidiary “positive” while noting the firm is waiting on additional potential divestitures.

On March 29, 2026, Compass Diversified agreed to sell the foodservice business of its majority-owned subsidiary, SternoCandleLamp Holdings, to Archer Foodservice Partners for an enterprise value of $292.5M, subject to working capital and other adjustments. The business generated approximately $30.3M in adjusted EBITDA in 2025, including shared overhead that will remain post-transaction. The company plans to use net proceeds to repay outstanding debt and expects its senior secured net leverage ratio to fall below 1.0x following closing. Compass Diversified also expects to avoid fees tied to excess leverage beyond June 30. After the sale, the company will retain Sterno’s home fragrance segment, which will continue operating as Rimports, a Provo, Utah-based manufacturer and distributor of branded and private-label home fragrance products. The transaction is subject to customary conditions and regulatory approvals and is expected to close in May 2026.

Earlier in March, Raymond James re-initiated coverage of Compass Diversified (NYSE:CODI) with a Market Perform rating and no price target following a restatement tied to accounting unreliability at the Lugano subsidiary. The firm said there “remains much work to be done” as the company proceeds with divestitures and works to return to compliance with its credit agreements.

Compass Diversified (NYSE:CODI) is an investment holding company focused on investing in industrial and branded consumer businesses across multiple sectors.

While we acknowledge the risk and potential of CODI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CODI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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