Stifel raises Compass Pathways stock price target on NDA progress

Investing.com - Stifel raised its price target on Compass Pathways (NASDAQ:CMPS) to $14.00 from $11.00 while maintaining a Buy rating on the stock. The shares currently trade at $5.67, down 11% over the past week despite posting a 70% gain over the last year.

The firm cited the company’s fourth-quarter 2025 earnings and progress on its rolling New Drug Application, which remains on track for completion in the fourth quarter of 2026. Compass Pathways reported positive topline results from Part-A of its ’006 Phase 3 study and encouraging 26-week durability data from Part B of the ’005 Phase 3 study.

The company plans to meet with the Food and Drug Administration to confirm alignment on the rolling submission and the approval pathway. The final requirement is Part-B data for the ’006 study, expected in early third quarter 2026. According to InvestingPro data, Compass holds more cash than debt on its balance sheet, a crucial advantage for funding clinical trials through the approval process. However, the platform’s analysis suggests the stock appears overvalued at current levels.

Stifel noted that three studies achieving statistical significance on their primary endpoints is sufficient for approval in psychiatry, and the safety profile appears clean. The firm said recent key opinion leader feedback from its CNS event was positive regarding COMP360’s potential for meaningful use given less frequent dosing compared to Spravato.

The focus has shifted to the commercial rollout, with ongoing debate about the feasibility and scalability of the 6-8 hour inpatient treatment. Investors seeking deeper analysis can access a comprehensive Pro Research Report on CMPS, one of over 1,400 US equities covered with expert insights and actionable intelligence.

In other recent news, Compass Pathways reported its fourth-quarter and full-year 2025 financial results, highlighting progress in the development of COMP360 for treatment-resistant depression. The company also successfully raised approximately $200 million through the exercise of warrants, issuing American Depositary Shares (ADSs) and pre-funded warrants to institutional investors. Additionally, Compass Pathways priced a $150 million public offering of ADSs at $8.00 per share, with pre-funded warrants available for certain investors. The offering includes an option for underwriters to purchase additional shares, with an expected closure in February 2026.

Morgan Stanley adjusted its price target for Compass Pathways to $16.00, maintaining an Overweight rating, citing the company’s ongoing advancements in its clinical studies. Meanwhile, RBC Capital increased its price target for the company to $22.00, maintaining an Outperform rating, following positive data from the company’s Phase III trials. These developments reflect the company’s strategic financial maneuvers and continued focus on advancing its treatment options.

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