- Compass Pathways (CMPS, Financial) shares plunged 46% after phase 3 trial results for a depression treatment.
- The trial's primary endpoint was achieved but did not meet investor expectations, causing analyst downgrades.
- Analysts maintain an "Outperform" rating despite the setback, with a significant upside potential.
Shares of Compass Pathways (CMPS) experienced a dramatic 46% drop after the company released its phase 3 trial results for a psilocybin-based treatment aimed at addressing treatment-resistant depression. While the COMP005 trial managed to meet its primary endpoint, the results fell short of what investors had anticipated, prompting a series of analyst downgrades.
Wall Street Analysts' Forecast
According to projections from 11 analysts over the coming year, Compass Pathways PLC (CMPS, Financial) has an average target price of $16.82. These projections range from a high of $45.00 to a low of $11.00. This average target price suggests a remarkable potential upside of 574.08% from the current price of $2.50, offering investors a glimpse of significant growth potential. For more detailed forecast data, you can visit the Compass Pathways PLC (CMPS) Forecast page.
Brokerage Recommendations
Despite recent setbacks, Compass Pathways PLC (CMPS, Financial) maintains an "Outperform" status based on a consensus recommendation from 11 brokerage firms. The current average brokerage recommendation stands at 1.7 on a scale where 1 is a Strong Buy and 5 is a Sell. This rating reflects a generally positive outlook, suggesting that analysts still hold confidence in the company's long-term potential, despite recent challenges.
