Paul Matteis, an analyst from Stifel Nicolaus, has initiated a new Buy rating on COMPASS Pathways (CMPS).
Paul Matteis has given his Buy rating due to a combination of factors that suggest a positive outlook for COMPASS Pathways. The company is positioned at a pivotal moment as the acceptance of psychedelics in neuropsychiatry is gaining momentum among key stakeholders, including the FDA and healthcare professionals. COMPASS Pathways is advancing its COMP360 psilocybin treatment through two critical Phase 3 studies, with the first results anticipated in the second quarter of 2025. This timing presents a strategic opportunity for investors, as the stock is currently undervalued compared to its initial public offering price.
Furthermore, the success of Spravato, a similar treatment model, provides a strong precedent for the commercial viability of psychedelic therapies. Although challenges remain, such as the complexity of the treatment model and safety concerns, the company’s progress in aligning with regulatory expectations and the potential market share of COMP360 offer significant upside potential. The upcoming trial results and broader industry trends could further validate COMPASS Pathways’ approach, making it an attractive investment opportunity.
In another report released on February 12, H.C. Wainwright also reiterated a Buy rating on the stock with a $45.00 price target.