Overview of B.Riley's Coverage#
B.Riley has initiated coverage on Compass Pathways (NASDAQ:CMPS) with a Buy rating and set a price target of $17. Currently, the stock is trading at $9.15, indicating a significant potential increase based on the analyst's target. However, some data suggests that the stock may be overvalued compared to its estimated fair value.
Company Developments#
Compass Pathways is working on what could be the first FDA-approved oral psychedelic drug aimed at treating depression that does not respond to standard treatments. The company is preparing for its second Phase 3 trial results, expected in the third quarter of 2026, and plans to submit a New Drug Application (NDA) in the fourth quarter of 2026.
Analyst Insights#
Analyst Madison El-Saadi from B.Riley noted that Compass Pathways is ahead of its competitors in the psychedelic space by more than two years. The projected revenue for fiscal year 2028 is around $221 million, significantly higher than the peer median of $106 million. The company’s successful Phase 3 trials have shown promising results similar to Johnson & Johnson’s SPRAVATO, but with fewer doses required.
Recent Collaborations and Financial Updates#
In recent news, Compass Pathways has partnered with Osmind to prepare U.S. psychiatric clinics for the potential rollout of its COMP360 treatment, pending FDA approval. They have also launched a grant program to help organizations create training for healthcare providers on this investigational treatment. On the financial side, BTIG has reaffirmed its Buy rating, while Canaccord has adjusted its price target to $18, citing recent capital raises that may affect the company’s cash flow into 2028.