Compass Therapeutics, Inc. (CMPX): A Bull Case Theory

We came across a bullish thesis on Compass Therapeutics, Inc. on r/stocks by  Cute_Confidence6033. In this article, we will summarize the bulls’ thesis on CMPX. Compass Therapeutics, Inc.'s share was trading at $5.70 as of January 16th.

Compass Therapeutics (CMPX) is a clinical-stage oncology company with a focused pipeline targeting large, underserved cancer markets, and its current valuation appears disconnected from the scale of its opportunity. With a share price around $6 and a market capitalization of approximately $1.2 billion, the company holds a strong cash position of $209 million against a historically manageable annual cash burn of $30–50 million, providing runway through multiple critical data readouts.

Ownership quality is a key differentiator, with roughly 65% institutional ownership led by specialist healthcare investors such as Tang Capital, OrbiMed, Suvretta, Vivo, BVF, and Patient Square, alongside 10% insider ownership and a long-tenured board that signals strategic continuity. The core value driver is CTX-009 (tovecimig), with a Phase 3 program in biliary tract cancer targeting an estimated $1.5 billion peak sales opportunity and a Phase 2 colorectal cancer program with $2 billion-plus potential, significantly expanding the addressable patient population.

Additional upside comes from CTX-471 in solid tumors, CTX-8371 in PD-1–resistant tumors, and early-stage PD-1 x VEGF programs, bringing total pipeline potential above $4.5 billion. Recent developments reinforce confidence, including the hiring of Arjun Prasad, a recognized commercial leader in cholangiocarcinoma, encouraging signals from the Phase 3 COMPANION-002 trial showing fewer deaths than projected, and the appointment of a former Sanofi/Genzyme executive to senior leadership.

With major catalysts ahead, including Phase 3 BTC data in March 2026, ASCO presentation mid-2026, and potential BLA filing in late 2026, Compass Therapeutics offers a highly asymmetric, catalyst-driven upside, with bullish scenarios implying substantial rerating if clinical success is confirmed.

Previously, we covered a bullish thesis on CRISPR Therapeutics AG (CRSP) by MADD-Scientis in March 2025, which highlighted the commercial ramp of Casgevy, strong net cash position, and upside from its broader gene-editing pipeline. CRSP’s stock price has appreciated by approximately 30.60% since our coverage as the thesis played out. Cute_Confidence6033 shares a similar thesis but emphasizes on late-stage, catalyst-driven oncology upside at Compass Therapeutics with multiple binary readouts ahead.

Compass Therapeutics, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held CMPX at the end of the third quarter which was 15 in the previous quarter. While we acknowledge the potential of CMPX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.