Buy Rating Backed by High Likelihood of COMP360 TRD Approval and Significant Upside from Conservative DCF Valuation

Andrew Tsai, an analyst from Jefferies, has initiated a new Buy rating on COMPASS Pathways (CMPS).

Andrew Tsai has given his Buy rating due to a combination of factors, primarily his view that COMP360 has a high likelihood of winning U.S. approval for treatment‑resistant depression by the end of 2026, supported by multiple statistically robust Phase IIb/III trials and an FDA breakthrough designation. He believes the commercial opportunity is substantial, with COMP360 positioned as a first‑in‑class psychedelic therapy in a large, underserved TRD population and benefiting from durable efficacy with relatively infrequent dosing.

Tsai also highlights that COMPASS can capitalize on the existing Spravato clinic network and growing institutional and governmental support for psychedelics, which should lower launch friction and accelerate uptake. His valuation work, based on a DCF sum‑of‑the‑parts framework and conservative peak sales assumptions of roughly $1.5B+ in TRD plus an additional PTSD option, implies material upside from the current market cap, reinforcing his Buy recommendation.

In another report released on April 28, H.C. Wainwright also reiterated a Buy rating on the stock with a $70.00 price target.