** 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;))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.