COMPASS Pathways Receives Analyst Ratings

LOS ANGELES- COMPASS Pathways, a company specializing in mental health treatments, has garnered significant attention in recent market reports due to favorable analyst ratings and its stock performance. Several brokerages have maintained a consensus “Buy” rating on COMPASS Pathways, with price targets ranging from $23.00 to $47.40. Six research analysts have recently reiterated their “buy” ratings, with HC Wainwright setting a high target of $120.00 per share. Other firms, such as Canaccord Genuity Group, have adjusted their targets slightly, reducing from $50.00 to $48.00 while maintaining a positive outlook.

Royal Bank of Canada also reaffirmed an “outperform” rating with a $23.00 price target, adding to the company’s strong reputation among analysts. The stock’s potential for growth has been highlighted, with analysts drawing comparisons to other firms within the mental health and therapy sectors.

The company’s shares, listed on the NASDAQ under the ticker CMPS, were up 6.9% as of Wednesday, trading at $7.25. The firm has a market capitalization of $495.83 million, with a negative price-to-earnings (P/E) ratio of -3.06, reflecting the company’s unprofitability as it continues to develop its therapeutic offerings. COMPASS Pathways has a beta of 2.27, indicating higher volatility relative to the overall market.

In its most recent quarterly earnings report, the company posted a loss of $0.56 per share, which missed analysts’ consensus expectations of a $0.53 loss. This compares to a $0.62 loss in the same period last year. Analysts expect the company to post a total loss of $2.35 per share for the current fiscal year.

Institutional investors have shown interest in COMPASS Pathways, with hedge funds and other institutional investors owning 46.19% of the company’s stock. Notable recent investors include Quest Partners LLC, Blue Trust Inc., and Kennedy Capital Management LLC, all of which purchased new stakes in the company over the past year.

COMPASS Pathways is developing COMP360, a psilocybin-based therapy currently in Phase III clinical trials for treatment-resistant depression, with ongoing Phase II trials for conditions such as post-traumatic stress disorder and anorexia nervosa. The company’s focus on addressing mental health challenges positions it as a key player in the emerging field of psychedelic therapies.