Thomas Shrader, an analyst from BTIG, maintained the Buy rating on COMPASS Pathways (CMPS – Research Report). The associated price target is $12.00.
Thomas Shrader has given his Buy rating due to a combination of factors that highlight the potential of COMPASS Pathways’ COMP360 treatment. The company’s strategic approach to its upcoming clinical trial readouts is designed to minimize placebo effects, which are typically lower in treatments like COMP360 that do not require frequent dosing reminders. This strategy aims to preserve the integrity of future trial results, which is crucial for the success of their ongoing studies.
Additionally, the management’s confidence in the upcoming trial data, expected in 2Q25 and 2H26, is supported by previous positive results, such as the significant improvements observed in earlier trials. The company’s financial position is also strong, with substantial cash reserves, which supports continued development efforts. Furthermore, the success of SPRAVATO in the market is seen as a positive indicator for COMP360’s potential, as it prepares the market for similar interventional psychiatry treatments. These factors collectively contribute to the optimistic outlook for COMPASS Pathways, justifying the Buy rating.
In another report released on February 28, Canaccord Genuity also maintained a Buy rating on the stock with a $15.00 price target.