Compass Therapeutics (NASDAQ:CMPX) saw its stock climb 3.1% on Friday following Craig-Hallum’s initiation of coverage, which assigned a Buy rating and set a $15.00 price target. The brokerage firm framed its coverage around Compass’ work on bispecific antibodies - or BsAbs - aimed at angiogenesis and immuno-oncology pathways, areas it views as central to the next wave of cancer therapies.
Craig-Hallum emphasized the company’s lead candidate, tovecimig (PD-1xVEGF-A), which the firm says is nearing a potential commercial opportunity in second-line biliary tract cancer. That program is presented as the closest to market within Compass’ pipeline as the company moves toward a commercial-stage profile for the asset.
Alongside tovecimig, the analyst note underscored several early-stage assets. CTX-8371 is described as positioned to be a first-mover in the PD-1xPD-L1 bispecific class. CTX-10726 is identified as a fast-follower for the PD-1xVEGF-A modality, reflecting a strategy that pairs immediate commercial focus with pipeline depth in related mechanisms.
Craig-Hallum observed that Compass shares have already advanced substantially, with an 84% rally over the prior 12 months. Despite that prior appreciation, the firm expressed an expectation of additional upside over the coming 12 to 18 months as the company transitions to commercial-stage activity tied to tovecimig and as its early-stage candidates achieve clinical validation.
The $15.00 price objective set by Craig-Hallum implies meaningful upside from the level at which CMPX was trading at the time the coverage was initiated, according to the firm’s analysis. That valuation anchor underpins the Buy recommendation and frames the broker’s view of the company’s near- to intermediate-term commercial and clinical catalysts.
Summary
Craig-Hallum initiated coverage of Compass Therapeutics with a Buy rating and a $15.00 price target, sending CMPX shares up 3.1% on Friday. The firm cited conviction in Compass’ BsAb strategy, highlighted tovecimig’s potential commercial opportunity in second-line biliary tract cancer, and pointed to early-stage programs CTX-8371 and CTX-10726 as complementary pipeline assets. Despite an 84% year-over-year rally in the stock, Craig-Hallum anticipates further upside over the next 12 to 18 months as the company advances to commercial-stage work and seeks clinical validation for its earlier programs.
Key points
- Craig-Hallum initiated coverage on Compass Therapeutics with a Buy rating and a $15.00 price target, prompting a 3.1% stock increase.
- The analyst note emphasized tovecimig (PD-1xVEGF-A) as the lead asset approaching a potential commercial opportunity in second-line biliary tract cancer, with CTX-8371 and CTX-10726 cited as promising early-stage candidates.
- The biotech sector and oncology-focused equities are directly affected by the coverage; broader market attention may follow as Compass transitions toward a commercial-stage profile.
Risks and uncertainties
- Tovecimig’s commercial opportunity is described as potential - successful launch and commercialization are not guaranteed.
- Early-stage assets such as CTX-8371 and CTX-10726 require clinical validation to support the firm’s thesis of further upside, creating execution and clinical risk.