Compass Pathways PLC (CMPS) closed up 1% at $12.99 on Tuesday after announcing positive 26-week data from its late-stage trial of COMP360, an investigational synthetic psilocybin treatment for treatment-resistant depression. The stock experienced intraday volatility, swinging as much as 3% higher and 10% lower, as investors took profits despite four Wall Street analyst firms maintaining Buy or Outperform ratings with price targets ranging from $17 to $20. Wolfe Research analyst Rudy Li said durable 26-week efficacy data, improved response and remission rates, and a clean safety profile keep the company on track for a New Drug Application filing in the fourth quarter of this year and a potential first-half 2027 US launch. The positive results come as Compass prepares its FDA approval application for what analysts believe could become the first psychedelic drug approved by the agency for depression treatment.
COMP360 Trial Shows Durable Symptom Relief Over 26 Weeks
Patients with long-standing, difficult-to-treat depression received one or two doses of COMP360 in the trial. Many saw meaningful relief from their symptoms within weeks, and those benefits held up for at least six months on average, the company said. A second dose helped even more patients get stronger results that lasted longer. The treatment was generally well tolerated. Most side effects were mild and happened on the day of dosing. A reported suicide was not connected to the drug, Compass said. COMP360 is Compass Pathways' investigational synthetic psilocybin treatment. Psilocybin is the active compound found in magic mushrooms.
Four Analyst Firms Maintain Buy Ratings With $17-$20 Price Targets
Stifel kept its Buy rating on the stock following the update. The firm said the results support using a second dose to improve outcomes. It also noted that comparing different psychedelic studies is difficult because patient groups vary. Oppenheimer maintained its Outperform rating and $20 price target, hinting at a potential upside of about 54%. The analysts called the lasting benefits encouraging and said the drug could become the first psychedelic approved by the FDA. They believe the long-term market opportunity is bigger than the current stock price reflects.
Morgan Stanley kept its Overweight rating and $17 price target, implying a potential upside of about 31%. The firm viewed the new data as confirmatory. It highlighted the quick effect, benefits that lasted through six months, and a practical dosing approach for patients with chronic depression. Wolfe Research reiterated its Outperform rating and $18 price target, representing a potential upside of about 39% from the last close. Analyst Rudy Li said the durable 26-week data, improved response and remission rates, and clean safety profile keep the New Drug Application filing and potential launch in the first half of 2027 on track. The firm sees Tuesday's pullback as a sell-the-news overreaction and an attractive entry point. Wolfe expects the stock to regain strong momentum after this, though it will likely stay volatile ahead of more regulatory updates. According to data from Koyfin, 14 of the 15 analysts covering CMPS stock rate it Buy or higher, while one rates it Hold.
Compass Pathways Plans FDA Filing in Fourth Quarter
Compass said it is already preparing its application for FDA approval, with final submission expected in the fourth quarter of this year. If approved, a US launch could happen in the first half of 2027.
Retail Traders Show Bullish Sentiment on Stocktwits
On Stocktwits, retail sentiment surrounding CMPS remained in the bullish zone while message volumes jumped from high to extremely high levels. According to a Stocktwits poll of about 750 respondents, CMPS ranked second only to SoundHound among the stocks investors are most bullish on over the next five years. CMPS received 25% of the votes, compared with 51% for SoundHound. A Stocktwits user voiced hopes for the stock rallying to $20 this week and dismissed Tuesday's slight rally as bit of profit taking. Another user voiced optimism for the company getting bought out at nearly three times its current share value. CMPS stock has gained 88% year-to-date.
FAQ
What did Compass Pathways announce on Tuesday that moved CMPS stocks?
Compass Pathways announced positive 26-week data from its late-stage trial of COMP360 for treatment-resistant depression on Tuesday. The company said patients who received one or two doses saw meaningful symptom relief within weeks, and those benefits held up for at least six months on average.
What are analysts' price targets for CMPS stocks after the trial data release?
Four analyst firms maintained Buy or Outperform ratings with price targets ranging from $17 to $20. Oppenheimer set a $20 target (54% upside), Wolfe Research set an $18 target (39% upside), and Morgan Stanley set a $17 target (31% upside). Stifel kept its Buy rating without disclosing a specific price target in the article.
When does Compass Pathways plan to file for FDA approval of COMP360?
Compass Pathways said it is preparing its FDA approval application with final submission expected in the fourth quarter of this year. If approved, a US launch could happen in the first half of 2027.
