Compass Therapeutics: Positive Drug Data and Strategic Expansion Justify Buy Rating

Compass Therapeutics (CMPX – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on May 9. Analyst Andrew Berens from Leerink Partners maintained a Buy rating on the stock and has a $6.00 price target.

Andrew Berens has given his Buy rating due to a combination of factors related to Compass Therapeutics’ recent developments and future potential. The company reported positive data for its drug tovecimig in treating second-line biliary tract cancer, showing a compelling objective response rate compared to the control group. This has set the stage for further promising data on progression-free survival and overall survival expected later in the year.
Additionally, Compass Therapeutics is strategically expanding its research efforts beyond biliary tract cancer by planning a basket study targeting various DLL4+ cancers. This approach aims to identify potential efficacy signals that could support label expansion for tovecimig. Furthermore, the company’s early-stage pipeline, including the dose escalation trial for CTX-8371, is progressing well, with no dose-limiting toxicities observed. These factors collectively contribute to the positive outlook and justify the Buy rating.

Berens covers the Healthcare sector, focusing on stocks such as Arvinas Holding Company, IDEAYA Biosciences, and AstraZeneca. According to TipRanks, Berens has an average return of -8.7% and a 33.68% success rate on recommended stocks.

In another report released on May 9, Guggenheim also reiterated a Buy rating on the stock with a $10.00 price target.