Buy Rating Affirmed for COMPASS Pathways Amid Strong Financials and Promising Clinical Trials

Analyst Michael Okunewitch of Maxim Group maintained a Buy rating on COMPASS Pathways (CMPS – Research Report), with a price target of $22.00.

Michael Okunewitch has given his Buy rating due to a combination of factors that include COMPASS Pathways’ solid financial position and the promising clinical results of their psilocybin-based therapies. The company’s recent announcement of their first-quarter results for 2024 indicated a net loss but also a robust cash position of $263M, which is projected to provide sufficient funding well into late 2025 or early 2026. This financial stability is seen as critical as it supports the company through the expected release of top-line data from two key Phase 3 studies.
Furthermore, compelling Phase 2 results from COMPASS Pathways’ studies in PTSD demonstrate significant promise, with response rates surpassing 80% and remission rates over 60% at four weeks, maintaining only a modest decline at twelve weeks. The continuation of the Phase 3 program in treatment-resistant depression (TRD) and the company’s potential to broaden its psilocybin-based treatments to various psychiatric conditions are considered strong indicators for the company’s future growth and success, which underpin Okunewitch’s optimistic Buy rating.

In another report released yesterday, Oppenheimer also maintained a Buy rating on the stock with a $25.00 price target.

CMPS’s price has also changed dramatically for the past six months – from $5.270 to $7.860, which is a 49.15% increase.

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COMPASS Pathways (CMPS) Company Description:

Compass Pathways PLC is a mental health care company dedicated to accelerating patient access to evidence-based innovation in mental health. The company is motivated by the need to find better ways to help and empower people suffering with mental health challenges who are not helped by existing therapies, and are pioneering the development of a new model of psilocybin therapy, in which psilocybin is administered in conjunction with psychological support. Its focus is on treatment-resistant depression, or TRD, a subset of depressive disorder, or MDD, comprising patients who are inadequately served by the treatment paradigm. It has developed a proprietary, high-purity polymorphic crystalline formulation of psilocybin, COMP360.