Analyst Patrick Trucchio of H.C. Wainwright reiterated a Buy rating on COMPASS Pathways (CMPS – Research Report), retaining the price target of $45.00.
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Patrick Trucchio has given his Buy rating due to a combination of factors including the promising progress of COMPASS Pathways’ COMP360 oral psilocybin treatment program for treatment-resistant depression (TRD). The company is on track to deliver significant data readouts from two pivotal Phase 3 trials, COMP005 and COMP006, which are expected to provide insights into the rapid antidepressant effects and durability of COMP360. The trials represent the largest controlled clinical program evaluating psilocybin therapy, aiming to support potential approval and labeling for episodic treatment in TRD.
Additionally, COMPASS Pathways’ strong financial position, with $260.1 million in cash as of March 31, and its advancing commercialization infrastructure further bolster the investment case. The analyst believes the current market valuation does not fully reflect the clinical and market potential of COMP360, particularly with additional opportunities in posttraumatic stress disorder (PTSD). These factors contribute to the reiterated Buy rating and a price target of $45 for CMPS.
In another report released on May 8, TD Cowen also maintained a Buy rating on the stock with a $23.00 price target.