H.C. Wainwright maintains Compass stock Buy rating, $24 target

Published 22/04/2025, 12:54
H.C. Wainwright maintains Compass stock Buy rating, $24 target

On Tuesday, H.C. Wainwright reaffirmed its Buy rating and $24.00 price target for Compass Therapeutics (NASDAQ:CMPX) shares, representing significant upside from the current price of $1.78. According to InvestingPro data, analyst price targets range from $6 to $32, with a strong consensus Buy recommendation. The firm’s endorsement follows the recent announcement by Compass Therapeutics on April 21 that it has begun dosing the first patient in a new trial for its leading drug candidate, tovecimig. With a strong current ratio of 14.96x and minimal debt-to-equity of 0.05, the company appears well-positioned to fund its clinical programs. InvestingPro subscribers can access 8 additional key insights about CMPX’s financial position.

The trial, which is Investigator Sponsored, aims to evaluate tovecimig in a first-line (1L) setting for the treatment of biliary tract cancer (BTC). The open-label study, led by MD Anderson, is testing the efficacy of adding tovecimig to the standard of care regimen, which includes gemcitabine, cisplatin, and durvalumab, in approximately 50 patients with unresectable or metastatic BTC.

The study is structured with an initial safety run-in phase for 12 patients, followed by an expansion phase for an additional 38 patients. Its primary goals are to determine the six-month progression-free survival (PFS), safety and tolerability, as well as finding the maximum tolerated dose of tovecimig when used in this combination. Secondary objectives of the trial include overall response rate (ORR), duration of response (DoR), PFS, and overall survival (OS).

This latest development is seen as a significant advancement for Compass’s tovecimig program. It complements the ongoing Phase 2/3 COMPANION-002 study, which is assessing the drug in a second-line (2L) BTC treatment setting. H.C. Wainwright’s reiteration of their Buy rating and price target reflects confidence in the potential of tovecimig and its role in Compass Therapeutics’ growth. Investors should note that the company’s next earnings report is expected on May 12, which could provide additional insights into the program’s progress and financial outlook.

In other recent news, Compass Therapeutics has announced promising results from its COMPANION-002 Phase 2/3 trial, which evaluated the combination of tovecimig and paclitaxel in treating advanced biliary tract cancer. The trial showed a statistically significant improvement in overall response rate compared to paclitaxel alone, with an overall response rate of 17.1% for the combination therapy. Additionally, the company has started a new clinical trial at The University of Texas MD Anderson Cancer Center, focusing on a potential treatment for biliary tract cancer using tovecimig. In another development, Leerink Partners upgraded Compass Therapeutics’ stock rating from Market Perform to Outperform, raising the price target from $4 to $6, citing a positive outlook on the company’s clinical programs. Stifel analysts maintained a Buy rating with a $10 price target, expressing confidence in the company’s prospects, although they noted that key data necessary for a full assessment will not be available until 2025. Piper Sandler also initiated coverage with an Overweight rating and a $12 price target, highlighting the upcoming data readout from the pivotal Phase 2/3 trial as a significant catalyst for the company’s shares. Investors are closely watching these developments as they could significantly impact Compass Therapeutics’ future trajectory and valuation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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