Canaccord Reiterates Buy Rating on Compass Pathways (CMPS)

Canaccord analyst Sumant Kulkarni reiterated a Buy rating and $20.00 price target on Compass Pathways (NASDAQ: CMPS).

The analyst commented: "This morning, CMPS reported what we view as robust durability data from Part B of COMP006, its second Phase 3 trial for COMP360 for treatment-resistant depression (TRD). Specifically, 39% of patients achieved a clinically-meaningful response after two doses of COMP360 at 26 weeks vs. 25% in Part B of COMP005, which involved a single dose. In addition, 28% of responders went into remission in the treatment interval. In fact, we see the results as more representative of scenarios we had cited in our note setting up this event in which we saw shares up on the data vs. 9% lower (SPX: -0.6%; XBI: -0.2%). We believe the downward move is mainly due to investor focus on an instance of a suspected suicide (see slide 15 in 8-K filing here) in the COMP360 (25mg) arm. The investigator determined this event as not related to treatment. The company said the event is under legal review in Spain, and clarified that it occurred over 80 days after treatment. So, we believe this overt investor focus on the event detracts from the remarkable consistency/robustness of results that CMPS has now shown in Parts A and B of two Phase 3 trials, i.e., COMP005 and COMP006, for COMP360 in TRD. As such, we see this weakness as presenting a clear BUYING opportunity into CMPS' completion of its ongoing rolling new drug application (NDA) submission in 4Q26, and what we view as a very high likelihood of FDA approval of COMP360 for TRD, which could come in late-26 or early-27. Reiterate BUY."

For an analyst ratings summary and ratings history on Compass Pathways click here. For more ratings news on Compass Pathways click here.

Shares of Compass Pathways closed at $12.99 yesterday.

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