Wall Street Analysts Believe Compass Therapeutics, Inc. (CMPX) Could Rally 154.09%: Here's is How to Trade

Core Viewpoint - Shares of Compass Therapeutics, Inc. (CMPX) have increased by 22.2% in the past four weeks, closing at $5.01, with a mean price target of $12.73 indicating a potential upside of 154.1% [1] Price Targets and Analyst Consensus - The average of 11 short-term price targets ranges from a low of $7.00 to a high of $30.00, with a standard deviation of $7.4, suggesting variability in analyst estimates [2] - The lowest estimate indicates a 39.7% increase from the current price, while the highest suggests a 498.8% upside [2] - A low standard deviation indicates a strong agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Potential Upside - Analysts have shown increasing optimism about CMPX's earnings prospects, with a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [11] - The Zacks Consensus Estimate for the current year has risen by 18.7% over the past month, with seven estimates increasing and no negative revisions [12] - CMPX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - While price targets are a common metric for investors, relying solely on them may not be prudent due to the questionable ability of analysts to set accurate targets [3][7] - Analysts often set optimistic price targets influenced by business relationships, which can lead to inflated estimates [8] - Despite the skepticism surrounding price targets, the direction they imply can serve as a useful guide for further research [10][14]