Shares of Compass Pathways (CMPS) rose 0.2% in extended trading on Wednesday after drawing fresh bullish support from Wall Street as its new six-month trial data boosted confidence that its depression treatment could be headed toward approval by the first half of 2027 or sooner.
jumped 8% on Wednesday, logging its second straight session in the green and its best day in nearly two weeks.
Evercore Sees H1 2027 Approval For COMP360
Evercore ISI upgraded Compass Pathways to ‘Outperform’ from ‘In Line’ and raised its price target to $21 from $8, implying a 50% upside from current levels. The firm said that its previous downgrade last summer was largely driven by concerns about whether COMP360’s benefits would hold up over longer follow-up periods. However, the latest 26-week COMP006 data “came in very similarly” to the earlier COMP005 data, building confidence in the treatment’s durability, the research firm said.
Evercore said that the key data now in hand supports approval and that approval is likely in the first half of 2027 or sooner. The firm also noted that investors are “increasingly” recognizing that the first few quarters of launch could be slow as Compass builds out treatment infrastructure, but said that the “pieces are in place” for long-term growth.
Compass Pathways Advances FDA Filing
The upgrade came after Compass’ six-month results from its second Phase 3 COMP006 trial of COMP360, a synthetic psilocybin treatment for treatment-resistant depression.
Compass said that the results showed the treatment worked quickly and maintained benefits for at least six months, reinforcing data from its earlier COMP005 trial. In COMP006, 39% of patients on the 25 mg dose saw a reduction in depression symptoms by week six after two fixed doses, with the benefit lasting on average through week 26.
The company said that this compared favorably with the 25% response seen in COMP005 after a single dose, adding that a second dose may help some patients. Compass also said that COMP360 remained generally well tolerated, with no new safety concerns and mostly temporary side effects on the day of dosing.
Compass said its rolling New Drug Application submission and initial FDA review are already underway, with final submission expected in the fourth quarter. The company also anticipates a first-half 2027 launch, subject to FDA approval and Drug Enforcement Administration (DEA) rescheduling.
Analysts See More Upside For CMPS
Stifel raised its price target to $21, implying a 50% upside, and kept a ‘Buy’ rating, noting that durability data support COMP360’s clinical edge over existing treatments and bolster confidence in a potential 2027 launch. The firm also lifted peak revenue expectations to $1.5 billion. Meanwhile, Oppenheimer’s $20 target implies a 43% upside, with the firm saying the data strengthens the “undervalued” case for what could be the first FDA approval of a classical psychedelic.
Wolfe Research’s $18 target implies a 29% upside as the firm called the stock’s pullback a “sell-the-news overreaction” and an “attractive entry point.” On the other hand, Morgan Stanley’s $17 target implies a 22% upside, noting that the update further validated COMP360’s rapid and durable profile, with consistency across COMP005 and COMP006 as the key takeaway.
How Do Retail Traders Feel About CMPS?
On Stocktwits, retail sentiment for CMPS climbed to ‘extremely bullish’ territory at 83/100, its highest level in a month, up from ‘bullish’ a week earlier, as message volume jumped 200% over the same period.
One user , “$CMPS A high-risk, high-reward play on the future of mental health treatment. If it's late-stage psilocybin therapy succeeds, the company could become a leader in treatment-resistant depression, opening a multi-billion-dollar market.”
Another user said, “$CMPS Hold this close. It's on the same path as AXSM Therapeutics, which is now over 250 PS...If it dips, buy more. Just HOLD it..!! We may never find any like this in the market again…”
View this Stocktwits postCMPS stock has surged 304% over the past year.