Compass Pathways price target lowered to $60 from $120 at H.C. Wainwright

H.C. Wainwright lowered the firm’s price target on Compass Pathways (CMPS) to $60 from $120 and keeps a Buy rating on the shares. The company reported Q3 results and provided a corporate update focused on its lead program COMP360, an oral form of psilocybin, in Phase 3 development for treatment-resistant depression, the analyst tells investors in a research note. The firm says Compass shares declined 23%, driven primarily by the shift of timing for top-line data in pivotal trial one to Q2 of 2025 and the pivotal trial two to the second half of 2026. The company also announced a restructuring that is expected to reduce the workforce by 30% and discontinue non-COMP360 preclinical efforts, notes H.C. Wainwright. The firm admits the delay in COMP005 and 006 data is disappointing, but believes this should enable Compass to enroll the most appropriate patients and generate data at a more favorable time point, possibly enhancing the probability of success for the program. As such, it views the selloff on the program update as overdone.