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Investing.com - H.C. Wainwright reiterated a Buy rating and $70 price target on Compass Pathways (NASDAQ:CMPS) following the company’s fourth-quarter and full-year 2025 results.
The firm noted that Compass Pathways reported results on March 24 that outlined a regulatory path to a potential rolling new drug application in the fourth quarter of 2026. The company also presented a framework for a commercial model using existing interventional psychiatry infrastructure.
Compass Pathways raised $350 million in capital during the first quarter of 2026, extending its financial runway into 2028. The funding covers the company through NDA submission, potential approval, and initial launch. According to InvestingPro data, the company holds more cash than debt on its balance sheet, though analysts do not anticipate profitability this year with an EPS forecast of -$1.77.
The FDA accepted the investigational new drug application for COMP360 in post-traumatic stress disorder. The acceptance advances the second major indication into registrational development beyond treatment-resistant depression.
H.C. Wainwright identified Compass Pathways as a 2026 top pick. The firm stated that clinical risk has largely been retired and the investment focus has shifted to regulatory sequencing, commercial readiness, and durability-driven economics. The stock has delivered an 88.6% return over the past year, though InvestingPro analysis suggests shares may be overvalued at current levels. Investors seeking deeper insights can access a comprehensive Pro Research Report on CMPS, available for this and 1,400+ other US equities.
In other recent news, Compass Pathways reported its fourth-quarter 2025 and full-year 2025 earnings, highlighting progress with its COMP360 treatment for treatment-resistant depression (TRD). The company shared positive topline results from its Phase 3 studies, which have been well-received by analysts. Compass Pathways also raised approximately $200 million through the exercise of warrants, alongside a $150 million public offering of American Depositary Shares (ADSs). These financial moves are part of the company’s strategy to support its ongoing developments. Stifel raised its price target for Compass Pathways to $14, citing the company’s progress on its New Drug Application and encouraging data from its studies. Meanwhile, Morgan Stanley adjusted its price target to $16, maintaining an Overweight rating and acknowledging the company’s advancements in TRD. RBC Capital increased its price target to $22, noting the positive data from the company’s successful Phase III trials. These developments reflect the growing confidence among analysts regarding Compass Pathways’ future prospects.
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