High-Conviction Buy on Compass Therapeutics: Near-Term Tovecimig Registration Data and Differentiated PD-1 x PD-L1 Bispecific Drive Favorable Risk-Reward

Compass Therapeutics, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Charles Zhu from LifeSci Capital maintained a Buy rating on the stock and has a $10.00 price target.

Charles Zhu has given his Buy rating due to a combination of factors tied to Compass Therapeutics’ lead programs and emerging pipeline. He views Compass as a high-conviction idea, anchored by the near-term registration data expected from the Phase 2/3 COMPANION-002 trial evaluating tovecimig in second-line biliary tract cancer, where a positive outcome could be a major value driver. In addition, he points to early but encouraging signals from CTX-8371, the company’s PD-1 x PD-L1 bispecific, which has already shown responses in heavily pretreated, post–PD-(L)1 cancer patients across several tumor types.

Charles Zhu also emphasizes external validation for the dual PD-1 x PD-L1 blockade concept from recently published data on a similar bispecific (IBI318/LY3434172), which in combination with lenvatinib delivered response rates and survival metrics suggesting activity beyond PD-1 retreatment or lenvatinib alone. He notes that CTX-8371 may offer further differentiation through its mechanism of action, potentially enhancing its competitive positioning. Together with Compass’s manageable cash burn and multi-year runway, these efficacy signals and upcoming catalysts support Zhu’s favorable risk-reward view and underpin his Buy recommendation on CMPX.

According to TipRanks, Zhu is a 5-star analyst with an average return of 27.3% and a 63.75% success rate. Zhu covers the Healthcare sector, focusing on stocks such as Kura Oncology, Zymeworks, and IDEAYA Biosciences.