Canaccord Genuity analyst Sumant Kulkarni has maintained their bullish stance on CMPS stock, giving a Buy rating on August 8.
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Sumant Kulkarni has given his Buy rating due to a combination of factors surrounding COMPASS Pathways’ progress and potential in developing psychedelic treatments. The company is advancing its lead candidate, COMP360, through Phase 3 trials for treatment-resistant depression, with recent top-line data from COMP005 being viewed positively despite initial investor misunderstandings. The anticipation of data from the second Phase 3 trial, COMP006, and the exploration of accelerating the new drug application filing for COMP360 further support this optimistic outlook.
Additionally, COMPASS Pathways is seen as a leader in the field, having generated sufficient evidence to meet FDA guidelines, and benefits from regulatory and political tailwinds for psychedelic therapeutics. The company’s strategic engagement with the FDA, including a forthcoming Type B meeting, is not expected to yield binary outcomes, which adds to the confidence in its trajectory. The durability of COMP360’s effects and its breakthrough therapy designation also enhance the potential for successful outcomes, reinforcing the Buy recommendation ahead of significant updates and trial readouts.
In another report released on August 8, Morgan Stanley also initiated coverage with a Buy rating on the stock with a $10.00 price target.