Analyst Thomas Shrader of BTIG maintained a Buy rating on COMPASS Pathways, with a price target of $14.00.
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Thomas Shrader has given his Buy rating due to a combination of factors including COMPASS Pathways’ strong lead in the psychedelic treatment landscape and consistent execution in their clinical trials. The company is well-positioned in the evolving treatment and reimbursement landscape, particularly in comparison to existing treatments like ketamine and SPRAVATO. Shrader notes that while there are competitors, such as a similar drug from Gilgamesh now owned by Abbvie, COMPASS Pathways maintains a significant advantage due to its advanced clinical development and potential for accelerated approval.
Additionally, Shrader highlights the high quality of COMPASS Pathways’ trials, which do not suffer from the issues that have affected other drug packages. The company’s management has also engaged in discussions with the FDA, which could lead to an earlier market launch, potentially increasing the target price. The growing familiarity with psychedelic drugs among regulators and the detailed clinical development pathway further support the positive outlook. Overall, the synergy between ketamine and psychedelics, along with the strategic positioning of COMPASS Pathways, underpins Shrader’s optimistic valuation.