Compass Pathways Maintains 'Buy' Rating at $15.00 Target: Canaccord Genuity

Compass Pathways (CMPS) maintains "Buy" rating from Canaccord Genuity with a $15 price target. Analyst Sumant Kulkarni reaffirmed the rating and target, highlighting continued confidence in the company. Compass Pathways is a mental health care company pioneering psilocybin therapy for treatment-resistant depression. The average analyst price target for CMPS is $16, with a high estimate of $45 and a low of $6, implying a 265.71% upside from the current price.

Compass Pathways plc (CMPS), a biotechnology company focused on mental health innovation, recently reported its financial results for the second quarter of 2025. The company maintained its "Buy" rating from Canaccord Genuity, with a $15 price target, as highlighted by analyst Sumant Kulkarni [1]. This rating reflects the continued confidence in Compass Pathways' pioneering psilocybin therapy for treatment-resistant depression (TRD).

In Q2 2025, Compass Pathways reported a net loss of $38.4 million, or $0.41 per share, compared to $38.1 million, or $0.56 per share, in the same period last year. The increase in net loss was primarily driven by a $2.5 million non-cash loss on fair value adjustment related to warrant liabilities, partially offset by $2.1 million related to foreign exchange gains [1]. For the six months ended June 30, 2025, the company reported a net loss of $56.3 million, or $0.62 per share, compared to $73.3 million, or $1.11 per share, in the same period last year. The decrease in net loss was driven by a $16.9 million non-cash gain on fair value adjustment related to warrant liabilities [1].

Research and development expenses increased to $30.3 million in Q2 2025, up from $29.1 million in the same period last year, primarily due to development expenses associated with advancing its late-stage COMP360 phase 3 clinical trials [1]. General and administrative expenses decreased to $12.6 million in Q2 2025, down from $14.3 million in the same period last year, primarily due to decreased staffing levels and lower insurance premiums and banking fees [1].

Compass Pathways' cash position as of June 30, 2025, was $221.9 million, compared to $165.1 million as of December 31, 2024. The company expects its cash position to be sufficient to fund operating expenses and capital expenditure requirements into 2027 [1]. The management team will host a conference call on July 31, 2025, at 8:00 am ET (1:00 pm UK) to discuss these results and provide further updates.

The company's positive primary endpoint achieved in the first COMP360 Phase 3 trial with high statistical significance, clinically meaningful reduction in depression at 6 weeks, and no unexpected safety findings, continues to drive investor confidence. Compass Pathways is exploring options for a potential accelerated COMP360 filing for TRD and has a second ongoing pivotal Phase 3 trial that is enrolling well, with 26-week data expected in the second half of 2026 [1]. The company is also finalizing the design of a late-stage clinical trial for psilocybin treatment in PTSD, taking into consideration the results from its phase 2 open label 12-week safety and tolerability study [1].

The average analyst price target for CMPS is $16, with a high estimate of $45 and a low of $6, implying a 265.71% upside from the current price [2]. This reflects the potential of Compass Pathways' investigational COMP360 synthetic psilocybin treatment, which has Breakthrough Therapy designation from the US Food and Drug Administration (FDA) and has received Innovative Licensing and Access Pathway (ILAP) designation in the UK for treatment-resistant depression (TRD) [1].

References:
[1] https://ir.compasspathways.com/News--Events-/news/news-details/2025/Compass-Pathways-Announces-Second-Quarter-2025-Financial-Results-and-Business-Highlights/default.aspx
[2] https://www.canaccordgenuity.com/