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

Published 29/04/2025, 13:26
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), representing significant upside from the current price of $1.90. According to InvestingPro data, analyst consensus remains strongly bullish, with price targets ranging from $6 to $32. The endorsement follows the presentation of new preclinical data at the American Association for Cancer Research (AACR) 2025 conference. Compass Therapeutics showcased findings for CTX-471, a CD137 agonist, used in tandem with tovecimig in treating checkpoint-refractory solid tumor mouse models.

Compass Therapeutics’ CTX-471 is undergoing a Phase 1 trial for patients with advanced solid tumors who have previously undergone checkpoint inhibitor (CKI) treatments. While the company maintains a strong financial position with a current ratio of nearly 15x and more cash than debt, InvestingPro analysis indicates rapid cash burn - a critical factor for investors monitoring clinical-stage biotech companies. The study results indicate that CTX-471 as a single agent can effectively boost tumor immune response, particularly by increasing natural killer (NK) cells in both human patients and mouse models. However, its effectiveness is somewhat reduced in CKI-resistant models.

The research further revealed that combining CTX-471 with tovecimig, which targets VEGF-A/DLL4, significantly amplified the anti-tumor effects compared to each treatment alone, especially in colorectal cancer models resistant to immune checkpoint inhibitors. This combination strategy showed potential in several murine models of immunotherapy resistance, suggesting increased relevance for human treatment.

The study authors noted that the combination therapy not only increased immune cell infiltration into tumors but also enhanced inflammasome activation, pyroptosis, and interferon-mediated signaling. These mechanisms could be key in improving outcomes for patients who have not responded to CKI therapies.

Summarizing the findings, H.C. Wainwright analysts pointed out the potential clinical benefits of pairing an agonistic anti-CD137 antibody with an anti-angiogenesis agent in cases where immune checkpoint inhibitors have been unsuccessful. The firm’s reiterated Buy rating and price target of $24 for Compass Therapeutics’ stock reflects confidence in the therapeutic prospects of this combined treatment approach. With the stock showing a 31% gain year-to-date but trading well below its 52-week high of $4.08, InvestingPro subscribers can access additional insights, including 8 more exclusive ProTips and detailed financial health metrics to better evaluate this investment opportunity.

In other recent news, Compass Therapeutics has initiated a clinical trial for its drug candidate, tovecimig, aimed at treating biliary tract cancer (BTC). The trial, conducted at MD Anderson Cancer Center, involves adding tovecimig to a standard regimen for approximately 50 patients with unresectable or metastatic BTC. This development complements Compass’s ongoing Phase 2/3 COMPANION-002 study, which showed a significant improvement in overall response rate when tovecimig was combined with paclitaxel. The study’s safety profile aligns with previous research, and an independent committee has recommended its continuation.

H.C. Wainwright recently reaffirmed its Buy rating and $24 price target for Compass Therapeutics, reflecting confidence in the potential of tovecimig. Similarly, Stifel analysts maintained a Buy rating with a $10 price target, anticipating the release of top-line data from the COMPANION-002 trial. Meanwhile, Leerink Partners upgraded Compass Therapeutics’ stock rating to Outperform, raising the price target to $6, citing a positive outlook on the company’s clinical programs. These recent developments highlight the ongoing progress and potential of Compass Therapeutics’ pipeline in the oncology sector.

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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