Analyst Ritu Baral of TD Cowen maintained a Buy rating on COMPASS Pathways (CMPS – Research Report), with a price target of $23.00.
Ritu Baral has given her Buy rating due to a combination of factors influencing COMPASS Pathways’ potential growth and financial stability. One of the key reasons is the progress in their Phase 3 trials for the COMP360 psilocybin therapy, particularly the ‘005 study for treatment-resistant depression (TRD), which is on track to deliver topline results by the second quarter of 2025. The anticipation of these results, which will include important metrics such as the MADRS score difference and safety data, suggests a promising outlook for the company’s product pipeline.
Additionally, the company’s financial position supports this optimistic view. Despite a net loss in the fourth quarter of 2024, COMPASS Pathways has a strong cash position, bolstered by recent fundraising efforts, providing a cash runway into the second half of 2026. This financial stability allows the company to continue its research and development activities without immediate financial constraints, further justifying the Buy rating as the company advances its clinical programs.
In another report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a $15.00 price target.