** Shares of Compass Diversified CODI.N, which invests in middle-market businesses, slide 9.9% to $6.47
** Jefferies downgrades CODI to "hold" from "buy" given material uncertainty from ongoing investigation at the company's Lugano arm
** CODI last month disclosed "non-reliance" on its FY 2024 financial statements amid concerns of irregularities in Lugano’s accounting and inventory practices
** Jefferies cuts PT to $7.30 from $28, which is still a 1.7% upside to stock's last close
** Brokerage says risk-reward currently balances unfavorably, given the depth and breadth of unresolved uncertainties
** 2 of 5 brokerages rate the stock "buy" or higher and 3 "hold"; median PT is $18 — data compiled by LSEG
** As of last close, CODI stock down 68.9% YTD
(Reporting by Arasu Kannagi Basil in Bengaluru)
((ArasuKannagi.Basil@thomsonreuters.com;))
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