Several analysts slashed their price targets on Compass Therapeutics after the FDA requested an additional trial for its cancer drug.

  • H.C. Wainwright cut CMPX target to $12 from $24, according to The Fly.
  • Wedbush downgraded Compass and slashed its target to $1 from $5, while Guggenheim halved its target to $4.
  • Compass plans to submit a BLA in the first quarter of 2027.

Shares of Compass Therapeutics (CMPX) fell more than 6% on Wednesday, heading for a third straight decline as analysts cut their price targets after a regulatory setback for the biotech’s lead cancer drug, Tovecimig.

CMPX stock is also heading for its 10th decline in 12 sessions.

Analyst Flags Higher Approval Risk

H.C. Wainwright cut its price target to $12 from $24, while keeping a ‘Buy’ rating, according to TheFly. The firm said it continues to believe Tovecimig works but called Compass’ plan to seek approval without another trial “risky,” noting that no confirmatory study is currently enrolling.

On Tuesday, the Food and Drug Administration (FDA) recommended another trial showing that Tovecimig improves overall survival in previously treated advanced biliary tract cancer before Compass submits its Biologics License Application (BLA).

Compass said it disagrees that another trial is necessary and plans to submit a BLA in the first quarter of 2027.

Wedbush Slashes Target To $1 From $5

Wedbush downgraded Compass to ‘Neutral’ from ‘Outperform’ and cut its target to $1 from $5, saying the FDA’s recommendation significantly complicates the regulatory path. The stock is currently trading at $1.2.

Guggenheim halved its target to $4 from $8, maintaining a ‘Buy’ rating, and called the FDA development “disappointing.” The firm now sees a potential U.S. launch in 2028 instead of 2027.

The company ended June with roughly $180 million in cash and marketable securities, expected to fund operations into 2028.

Retail’s Take On CMPX

Retail sentiment for CMPX on Stocktwits turned ‘extremely bullish’ from ‘bullish’ over the past 24 hours, amid ‘extremely high’ message volumes.

The stock has fallen more than 76% so far this year.

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