Sean McCutcheon, an analyst from Raymond James, has initiated a new Buy rating on Compass Therapeutics (CMPX).
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Sean McCutcheon has given his Buy rating due to a combination of factors that highlight the potential of Compass Therapeutics. The company’s lead asset, Tovecimig, has shown promising results in the Phase 3 COMPANION-002 study, particularly in its response rate compared to the control group. McCutcheon anticipates that Tovecimig will achieve statistical significance in progression-free survival (PFS) for second-line biliary tract cancer (BTC), with a U.S. approval expected in 2026, which could drive significant upside and momentum.
Additionally, the current treatment landscape for second-line BTC is limited, providing an opportunity for Tovecimig to become a new standard of care, especially given the lack of effective chemotherapy options for a majority of patients. Furthermore, Compass is strategically positioned to leverage the growing interest in VEGF bispecifics, with their novel PD-1 x VEGF-A asset, CTX-10726, potentially attracting strategic interest. These factors, combined with a favorable valuation outlook, underpin McCutcheon’s optimistic Buy rating.
In another report released yesterday, H.C. Wainwright also reiterated a Buy rating on the stock with a $24.00 price target.