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Analysts Bullish on COMPASS Pathways plc (CMPS) Following Psychedelics Symposium and Model Updates

COMPASS Pathways plc (NASDAQ:CMPS) is among the 7 Most Promising Psychedelic Stocks According to Hedge Funds.

COMPASS Pathways plc (NASDAQ:CMPS) is given fourth position on our list of most promising stocks.

TheFly reported on February 14 that LifeSci Capital was bullish on CMPS, as the firm initiated coverage on the stock with a Buy rating and a $15 price target. In a similar move, earlier on January 23, RBC Capital raised its price target on CMPS to $21 from $16 and maintained an Outperform rating on the shares. The update follows the firm’s recent Psychedelics Symposium, with adjustments made to the CMPS model to better reflect key opinion leaders’ views on pricing and potential barriers to generic entry in the emerging psychedelic therapy market.

Separately, earlier on January 7, COMPASS Pathways plc (NASDAQ:CMPS) announced that the FDA had approved its IND application for COMP360, enabling a late-stage Phase 2b/3 trial in patients with PTSD. In addition to treatment-resistant depression (TRD), this is the company’s first foray into another significant psychiatric indication with a significant unmet need. In order to promote the smooth transition of COMP360 into clinical settings, Compass has bolstered partnerships with interventional psychiatry networks, including Radial, and expedited hiring for its commercial and regulatory teams in anticipation of a possible 2027 launch for TRD.

The corporation also highlighted that the operational cash burn remained consistent and within forecast, despite the GAAP net loss of $137.7 million appearing to be substantial. This is mainly due to the accounting treatment of warrants. As the firm progresses toward late-stage development and possible COMP360 commercialization, management emphasized that these strategic and operational actions allow the company to accelerate its clinical programs while maintaining financial flexibility.

COMPASS Pathways plc (NASDAQ:CMPS) is a clinical‑stage mental health company developing psilocybin‑based therapies and digital therapeutics to treat treatment‑resistant depression, advancing evidence‑based psychedelic medicine through rigorous research, scalable protocols, and personalized care models.

While we acknowledge the potential of CMPS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CMPS and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Unstoppable Dividend Stocks to Buy According to Analysts and Dividend Champions, Contenders and Challengers list: 15 Highest Yielding Stocks.

Disclosure: None.

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