Hardware crypto wallet Arculus will boost revenue at owner CompoSecure (NASDAQ: CMPO) as it seeks to gain ground on cold storage competitors such as Ledger and Trezor, Needham equity research analyst John Todaro told clients in a note Friday.

Cold storage is a way of holding cryptocurrency tokens offline rather than on an internet-connected exchange.

Todaro sees Arculus becoming one of the top three largest crypto hardware wallet providers by the end of this year, and expects continued material revenue growth from this segment throughout 2023.

CompoSecure could sell 160,000 Arculus units this year and 840,000 units in 2023, Todaro estimated. While Ledger and Trezor will sell more wallets over those years thanks to customer “stickiness,” Todaro thinks the speediest growth will be in Arculus.

Todaro and team see continued growth in private custody, expecting a 6.4% three-year compounded growth rate for bitcoin (BTC) addresses, and a 32.4% growth rate for Ethereum-based addresses.

Todaro initiated CompoSecure with a buy rating and $14 price target, suggesting more than 80% upside from current levels. Shares are down about 7% so far in 2022.

Read more: Trezor Backtracks on ‘Travel Rule’ App for Self-Hosted Crypto Wallets Amid Uproar