Morgan Stanley analyst Judah Frommer initiated coverage on COMPASS Pathways with a Buy rating and a $10.00 price target. The company's shares opened at $4.45. The analyst consensus on COMPASS Pathways is a Strong Buy with an average price target of $15.10, representing a 239.33% upside. CMPS market cap is $408M and has a P/E ratio of -2.38.
Morgan Stanley analyst Judah Frommer has initiated coverage on Compass Pathways (CMPS) with a Buy rating and a price target of $10.00. The company's shares opened at $4.45 on July 2, 2025. The analyst consensus on Compass Pathways is a Strong Buy with an average price target of $15.10, representing a 239.33% upside. Compass Pathways has a market capitalization of $408 million and a P/E ratio of -2.38 [2].
Compass Pathways is dedicated to accelerating patient access to evidence-based innovation in mental health. The company's lead product candidate, COMP360, is a psilocybin treatment for treatment-resistant depression (TRD). The company has published positive phase 2 data for PTSD and is conducting pivotal trials for TRD. Compass Pathways has a cash position of $222 million at June 30, 2025 [2].
Treatment-resistant depression (TRD) affects millions in the U.S., with approximately 9 million patients failing to respond to at least two antidepressant regimens. TRD patients are disproportionately impacted compared to non-TRD major depressive disorder (MDD) patients, experiencing longer depressive episodes, greater work time loss, and increased risks of mortality [2].
The analyst consensus reflects optimism about Compass Pathways' potential to revolutionize mental health care. The company's pipeline and positive clinical trial results have garnered significant attention from investors. However, the high price target and negative P/E ratio indicate that the market expects substantial growth and potential for significant upside.
Investors should carefully consider Compass Pathways' unique position in the mental health market and the potential risks associated with the biotechnology sector. The company's strong clinical data and experienced management team position it well to capitalize on the growing demand for innovative mental health solutions.
References:
[1] https://www.marketbeat.com/instant-alerts/morgan-stanley-increases-duolingo-nasdaqduol-price-target-to-50000-2025-08-07/
[2] https://www.marketscreener.com/news/compass-pathways-investor-presentation-august-2025-ce7c5edfd18ffe24
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