Piper Sandler sets $12 target on Compass Therapeutics stock

Published 19/02/2025, 10:54
Piper Sandler sets $12 target on Compass Therapeutics stock

On Wednesday, Piper Sandler initiated coverage on Compass Therapeutics (NASDAQ:CMPX) with an Overweight rating and a price target of $12.00. Currently trading at $3.17, the stock has shown strong momentum with a 166% gain over the past six months, despite a recent 15% pullback last week. Compass Therapeutics, a biopharmaceutical company valued at $465 million, is currently focusing on the development of antibody programs in the field of oncology, with projects ranging from pivotal Phase 2/3 trials to preclinical stages. InvestingPro analysis reveals the company maintains a strong financial position with more cash than debt on its balance sheet.

The firm’s lead program, tovecimeg, is approaching a significant milestone with an expected data readout from its pivotal Phase 2/3 trial, COMPANION-002, slated for March. This trial’s outcome is highly anticipated as prior data suggests the potential for efficacy that could support regulatory approval. According to Piper Sandler, this event could serve as a compelling near-term catalyst for Compass Therapeutics’ shares. With a current ratio of 31.84, the company maintains ample liquidity to fund its clinical programs.

Piper Sandler’s analysis indicates confidence in the therapeutic’s prospects, as reflected in the Overweight rating. The assigned price target of $12.00 signals a positive outlook on the stock’s potential value.

The coverage initiation by Piper Sandler comes at a crucial time for Compass Therapeutics as the company awaits the upcoming results from its COMPANION-002 trial. The trial’s success is seen as a pivotal factor that could influence the company’s trajectory and stock performance.

Investors and industry observers are now looking forward to March when the data readout will provide more clarity on tovecimeg’s efficacy and its potential impact on Compass Therapeutics’ future.

In other recent news, Compass Therapeutics has reported significant developments in its oncology-focused clinical programs. The company anticipates top-line data from its Phase 2/3 study of tovecimig, a bispecific antibody used in treating biliary tract cancer patients, by the end of the first quarter of 2025. Additionally, a Phase 2 study for tovecimig in DLL4-positive colorectal cancer is set to commence in mid-2025. The company also plans to file an Investigational New Drug application for CTX-10726, a novel PD-1 x VEGF-A bispecific antibody, by the end of 2025. Furthermore, Compass Therapeutics is preparing for two Phase 2 biomarker trials for tovecimig and CTX-471, expected to initiate in mid-2025.

The company has also announced the appointment of Barry Shin as its new Chief Financial Officer. Shin brings over 20 years of experience in the biopharmaceutical industry, with significant roles in finance, operations, and corporate advising. His expertise in financial and strategic planning is expected to be instrumental as Compass progresses with its clinical and pre-clinical assets.

Regarding financials, Compass Therapeutics ended 2024 with an estimated $127 million in cash and marketable securities, projected to fund operations into the first quarter of 2027. As these are recent developments, investors are advised to follow official reports and filings with the U.S. Securities and Exchange Commission for further updates on the company’s progress.

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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