Compass Therapeutics (CMPX – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on February 27. Analyst Andrew Berens from Leerink Partners maintained a Hold rating on the stock and has a $4.00 price target.
Andrew Berens has given his Hold rating due to a combination of factors surrounding Compass Therapeutics’ current position and future prospects. One of the primary considerations is the upcoming pivotal data release for tovecimig in the first quarter of 2025, which is crucial for the company’s progress in the biliary tract cancer treatment space. The success of this trial is particularly important given the previous failure of tovecimig to meet the necessary thresholds in colorectal cancer as a monotherapy.
Additionally, there are several clinical and regulatory uncertainties that contribute to the cautious outlook. The company is advancing multiple trials, including a new study in frontline biliary tract cancer and a Phase 2 study in colorectal cancer, but there are questions about the efficacy of these treatments. Furthermore, while Compass Therapeutics has a robust pipeline with other promising candidates, such as CTX-471 and CTX-8371, these are still in early stages, and their outcomes remain uncertain. The company’s financial position, with $127 million in cash expected to last until the first quarter of 2027, provides some stability but does not eliminate the inherent risks associated with clinical development.