Canaccord Genuity analyst Sumant Kulkarni has maintained their bullish stance on CMPS stock, giving a Buy rating today.
Sumant Kulkarni has given his Buy rating due to a combination of factors surrounding the COMPASS Pathways stock. Despite the observed delay in the COMP005 Phase 3 trial for COMP360, which targets treatment-resistant depression, Kulkarni perceives the market’s response as an overreaction and, consequently, an advantageous entry point for investors. He has confidence in the solid foundation laid by the Phase 2b results for COMP360, which he believes augurs well for the outcome of Phase 3 data. This anticipation of positive Phase 3 results is core to the Buy recommendation.
Additionally, Kulkarni maintains his $50 price target for COMPASS Pathways, underlined by the unchanged timeline for the COMP006 Phase 3 trial and the expected filing of a New Drug Application. He underscores that the delay in one trial does not alter the company’s broader timeline for regulatory filings and market entry. The report also touches on the separation of COMPASS Pathways’ data release from other industry events, allowing investors to assess the company’s prospects without the immediate influence of concurrent regulatory decisions. Kulkarni’s model assumes a substantial peak sales figure by 2034 and a high probability of approval, which bolsters his positive outlook on the stock.
CMPS’s price has also changed moderately for the past six months – from $9.175 to $10.270, which is a 11.93% 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.
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