Last Updated: 13 Sep 2024
Executive Summary
Compass Therapeutics Inc. (CMPX) is a clinical-stage oncology-focused biopharmaceutical company developing proprietary antibody-based therapies. Despite strong analyst support, the company's financial performance remains weak, with negative earnings and margins. The stock price currently stands at $1.54, below its 52-week high of $2.34.
Company Overview
Compass Therapeutics is headquartered in Boston, Massachusetts. The company's pipeline includes multiple antibody-based therapies targeting various human diseases. Its lead candidate, CTX-009, is currently in Phase 2 clinical trials for the treatment of metastatic castration-resistant prostate cancer.
Fundamental Analysis
Revenue: TTM revenue of $850,000, with 0% quarterly growth YoY.
Earnings: Diluted EPS of -$0.35 TTM, indicating significant losses.
Margins: Gross profit margin of 0% and operating margin of -17.7% TTM.
Valuation: Market capitalization of $206.38 million, with a price-to-sales ratio of 242.8.
Technical Analysis
Moving Averages: The stock price is below its 50-day and 200-day moving averages.
Support and Resistance: Support at $0.765 (52-week low) and resistance at $2.34 (52-week high).
Short Term Outlook
The short-term outlook for CMPX is mixed. The company's weak financial performance and low stock price suggest a potential for further downside. However, the analyst target price of $8 indicates a potential upside of over 400%.
Long Term Outlook
The long-term outlook for CMPX depends on the success of its clinical trials. If CTX-009 and other candidates prove effective and gain regulatory approval, the company could experience significant growth. However, the competitive nature of the oncology market and the high costs of drug development pose challenges.
Analyst Recommendations
Analysts are generally bullish on CMPX, with 4 strong buy ratings and 2 buy ratings. The average analyst target price of $8 suggests a significant upside potential. However, investors should be aware of the company's financial risks and the challenges in the oncology market.
