On Monday, Compass Therapeutics' stock (NASDAQ:CMPX) had its stock price target lowered by Jefferies from the previous $8.00 to $7.00, while the firm continued to endorse the stock with a Buy rating.
The adjustment comes as the company announced a revised timeline for its pivotal bile duct cancer (BTC) phase II/III data, now expected in the first quarter of 2025, a slight delay from the initial end-of-2024 guidance. Despite this shift, the enrollment for the study is reportedly on schedule to be completed by mid-2024.
Moreover, Compass Therapeutics is on track to release top-line data from a phase II study for colorectal cancer (CRC) by mid-2024. The company is also progressing with its pipeline programs, initiating a phase II trial for its '471 monotherapy in advanced melanoma and continuing the dosing in the initial phase I trial for '8371.
The revision of the stock price target to $7 from the previous $8 is attributed to an increase in the share count, as noted by the analyst. The firm's perspective takes into account the latest updates provided by the company regarding its clinical trials and development timeline.
Compass Therapeutics has not provided any comments on the revised price target or the current status of its clinical programs beyond the updates shared. The company's stock continues to be monitored by investors as it progresses through various stages of drug development and clinical trials.
InvestingPro Insights
Compass Therapeutics (NASDAQ:CMPX) appears to be navigating through a challenging financial landscape. According to InvestingPro data, the company holds a market capitalization of $220.14 million, yet it is grappling with negative profitability indicators, as reflected by a P/E ratio of -6.37 based on the last twelve months as of Q4 2023. The company's operating income during the same period was reported at a loss of $50.36 million, emphasizing the financial hurdles it faces.
InvestingPro Tips suggest that while Compass Therapeutics has more cash than debt on its balance sheet, it is quickly burning through its cash reserves. The company's weak gross profit margins and anticipation of net income dropping this year are causes for concern among investors. Moreover, analysts do not expect the company to turn profitable this year, and it does not pay a dividend, which could be a factor for those seeking income-generating investments.
For investors considering Compass Therapeutics' potential, it's important to note that the company's liquid assets exceed its short-term obligations, which may provide some financial flexibility in the near term. Still, with the company not being profitable over the last twelve months and the stock's price currently at 43.92% of its 52-week high, the investment decision should be weighed carefully against these metrics.
To gain a deeper understanding of Compass Therapeutics' financial health and for additional insights, investors can explore more InvestingPro Tips. There are currently 7 additional tips available, which can be accessed with an exclusive offer: use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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