In a report released today, John Newman from Canaccord Genuity maintained a Buy rating on Compass Therapeutics, with a price target of $10.00.
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John Newman has given his Buy rating due to a combination of factors stemming from the potential of Compass Therapeutics’ drug pipeline, particularly tovecimig. He indicates that the Phase 2/3 trial of tovecimig in combination with paclitaxel has already demonstrated strong results in second-line biliary tract carcinoma, such as a significantly higher Disease Control Rate (DCR) and tumor size reduction compared to paclitaxel alone. These promising data suggest tovecimig could offer significant prolongation of Progression-Free Survival (PFS) and Overall Survival (OS), thereby increasing chances of FDA approval. Furthermore, Newman highlights the limited competition and high unmet need in biliary tract carcinoma as factors positioning Compass favorably in the market.
Additionally, the broader analysis Newman conducted on VEGF therapies lends optimistic support for tovecimig. Despite modest Overall Response Rates (ORR) typical of VEGF-targeted treatments, metrics like DCR show stronger correlation with meaningful patient outcomes such as PFS and OS. This insight reinforces the potential of tovecimig, which targets both VEGF-A and DLL4. Coupled with Compass Therapeutics’ additional assets in its pipeline, Newman believes the company holds substantial upside potential and reiterates a $10 price target alongside the Buy rating.
In another report released on December 3, Citizens JMP also initiated coverage with a Buy rating on the stock with a $10.00 price target.