CMPS Stock Clocks Muted Gains But Analysts Back Psychedelic Drug’s Durability Ahead Of FDA Filing

• Stifel kept its 'Buy' rating on the stock following the update.
• Oppenheimer believes the long-term market opportunity for COMP360 is bigger than the current stock price reflects. 
• Wolfe Research analyst Rudy Li said durable 26-week efficacy data, improved response and remission rates, and a clean safety profile keep the company on track for an NDA filing and a potential first-half 2027 launch.

Shares of Compass Pathways PLC (CMPS) closed up 1% at $12.99 following a choppy trading session on Tuesday after the company announced positive 26-week data from its second late-stage trial of COMP360 in treatment-resistant depression.

The stock swung as much as 3% higher and as much as 10% lower during the day, as investors appeared to take profits despite analysts describing the results as confirmatory of the drug’s rapid onset and durability.

What the Study Found

Patients with long-standing, difficult-to-treat depression received one or two doses of COMP360 in the trial. Many saw meaningful relief from their symptoms within weeks, and those benefits held up for at least six months on average, the company said.

A second dose helped even more patients get stronger results that lasted longer. The treatment was generally well tolerated. Most side effects were mild and happened on the day of dosing. A reported suicide was not connected to the drug, Compass said.

COMP360 is Compass Pathways’ investigational synthetic psilocybin treatment. Psilocybin is the active compound found in magic mushrooms.

What Analysts Are Saying

Stifel kept its 'Buy' rating on the stock following the update. The firm said the results support using a second dose to improve outcomes. It also noted that comparing different psychedelic studies is difficult because patient groups vary.

Oppenheimer maintained its 'Outperform' rating and $20 price target, hinting at a potential upside of about 54%. The analysts called the lasting benefits encouraging and said the drug could become the first psychedelic approved by the FDA. They believe the long-term market opportunity is bigger than the current stock price reflects.

Morgan Stanley kept its Overweight rating and $17 price target, implying a potential upside of about 31%. The firm viewed the new data as confirmatory. It highlighted the quick effect, benefits that lasted through six months, and a practical dosing approach for patients with chronic depression, it said.

Wolfe Research reiterated its 'Outperform' rating and $18 price target, representing a potential upside of about 39% from the last close. Analyst Rudy Li said the durable 26-week data, improved response and remission rates, and clean safety profile keep the New Drug Application (NDA) filing and potential launch in the first half of 2027 on track. The firm sees today’s pullback as a sell-the-news overreaction and an attractive entry point. Wolfe expects the stock to regain strong momentum after this, though it will likely stay volatile ahead of more regulatory updates.

According to data from Koyfin, 14 of the 15 analysts covering CMPS stock rate it 'Buy' or higher, while one rates it 'Hold.'

What's Ahead?

Compass said it is already preparing its application for FDA approval, with final submission expected in the fourth quarter of this year. 

If approved, a U.S. launch could happen in the first half of 2027.

How Did CMPS Retail Traders React?

On Stocktwits, retail sentiment surrounding CMPS remained in the ‘bullish’ zone while message volumes jumped from ‘high’ to ‘extremely high’ levels.

According to a Stocktwits poll of about 750 respondents, CMPS ranked second only to SoundHound among the stocks investors are most bullish on over the next five years. CMPS received 25% of the votes, compared with 51% for SoundHound.

A Stocktwits user voiced hopes for the stock rallying to $20 this week and dismissed Tuesday’s slight rally as “bit of profit taking.”

Another user voiced optimism for the company getting bought out at nearly three times its current share value.

CMPS stock has gained 88% year-to-date. 

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