Cantor Fitzgerald reiterates Compass Therapeutics stock rating

Investing.com reports that Cantor Fitzgerald has maintained an Overweight rating on Compass Therapeutics (NASDAQ:CMPX) following a Food and Drug Administration's (FDA) request for additional trials. The FDA's recommendation comes in the context of Compass Therapeutics seeking approval for tovecimig in second-line biliary tract cancer.

The stock experienced a dramatic 32% drop over the past week, trading near its 52-week low of $1.15. Cantor Fitzgerald explained that the FDA's demand signifies the worst-case scenario, which was unexpected given the positive results from the COMPANION-002 trial. Eight analysts have adjusted their earnings estimates downward as a result of the FDA's decision, according to InvestingPro.

However, the Fair Value analysis from InvestingPro indicates that the stock remains undervalued at the present time. Cantor Fitzgerald also pointed out that the trial exhibited a substantial progression-free survival benefit, although the overall survival data was affected by significant crossover. The FDA's request has impacted various analysts' opinions on the company, with some lowering their price targets while others have kept their ratings.