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Wednesday, Leerink Partners analyst upgraded Compass Therapeutics (NASDAQ:CMPX) stock rating from Market Perform to Outperform, simultaneously raising the price target to $6.00, up from the previous $4.00. The adjustment comes with a positive outlook on the company’s ongoing clinical programs. The upgrade follows strong market performance, with CMPX shares gaining 9.8% in the past week and an impressive 54.48% year-to-date. InvestingPro data shows the stock trading near its Fair Value, with analysts setting targets ranging from $4 to $32.
Compass Therapeutics, which is actively developing treatments in the oncology sector, has not seen any changes in Leerink’s assumptions for tovecimig in colorectal cancer (CRC), which is currently being tested in the second-line (2L) setting. This particular program contributes approximately $1/share to the price target. With a market capitalization of $309.75 million and a robust current ratio of 14.96, InvestingPro analysis reveals the company maintains strong liquidity to support its clinical programs. Get access to 8 more exclusive InvestingPro Tips about CMPX’s financial health and growth potential.
Additionally, CTX-471, which targets CD137 in NCAM+ solid tumors, remains valued at around $1/share of the price target. This program is expected to initiate a Phase 2 study in mid-2025, indicating potential future milestones that could influence the company’s valuation. While the company holds more cash than debt on its balance sheet, InvestingPro Tips indicate analysts do not anticipate profitability this year.
Leerink’s analysis does not currently assign direct value to two of Compass Therapeutics’ pipeline programs: CTX-8371, a PD-1 x PD-L1 inhibitor with top-line Phase 1 data anticipated in the second half of 2025, and CTX-10726, a PD-1 x VEGF-A inhibitor with an Investigational New Drug (IND) filing expected by the end of 2025.
Despite the raised price target, Leerink’s new target of $6 remains conservative compared to the median price target of $10, as per data from Factset. The firm suggests that as Compass Therapeutics’ programs progress, they will continue to adjust their assumptions and valuation metrics accordingly.
In other recent news, Compass Therapeutics announced positive 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 demonstrated a statistically significant improvement in the overall response rate compared to paclitaxel alone. Stifel analysts have maintained a Buy rating on Compass Therapeutics with a price target of $10, expressing a positive view of the risk/reward balance based on previous data. Piper Sandler initiated coverage with an Overweight rating and a $12 price target, indicating confidence in the therapeutic’s prospects. Compass Therapeutics also reported advancements in its clinical programs, including the planned initiation of a Phase 2 study for tovecimig in colorectal cancer by mid-2025. Additionally, the company is progressing with its novel PD-1 x VEGF-A bispecific antibody, CTX-10726, with plans to file an IND application by the end of 2025. The company ended 2024 with approximately $127 million in cash and marketable securities, expected to fund operations into the first quarter of 2027. These developments underscore Compass Therapeutics’ ongoing efforts in oncology research and its potential impact on future cancer treatments.
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