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Investing.com - B.Riley has initiated coverage on Axsome Therapeutics (NASDAQ:AXSM) with a Buy rating and a price target of $179.00, according to a research note published Wednesday. This target aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $144 to $200, with the stock currently trading at $121.45.
The research firm describes Axsome as a "multi-product pure-play neuro growth story" with its Auvelity depression medication driving revenue alongside a pipeline of additional neurological treatments targeting large market opportunities. The company’s strategy appears effective, with InvestingPro data showing impressive revenue growth of 69.8% over the last twelve months and an industry-leading gross profit margin of 91.5%.
B.Riley suggests a favorable entry point exists ahead of third-quarter earnings, potential 2026 drug approvals, and the initiation of late-stage candidates expected in the fourth quarter of 2025.
The firm models Axsome’s enterprise value-to-sales ratio at 4x based on fiscal year 2027 revenue estimates, slightly below its current 4.4x multiple and justified by projected year-over-year growth of 52% and 40% in fiscal years 2025 and 2026, respectively.
B.Riley also highlights Axsome’s operational efficiency, noting that fiscal year 2025 operating expenses run approximately 15% below peers, with the company potentially reaching cash flow positivity within nine months.
In other recent news, Axsome Therapeutics has been the focus of several analyst reports and strategic developments. Piper Sandler has reiterated its Overweight rating for Axsome Therapeutics, maintaining a price target of $148. The firm discussed Axsome’s commercial strategies for Auvelity in major depressive disorder and potential expansion into Alzheimer’s disease agitation treatment. Cantor Fitzgerald also maintained its Overweight rating with a $153 price target, though it slightly reduced its revenue projections for Sunosi, a treatment for narcolepsy and obstructive sleep apnea.
Wells Fargo initiated coverage on Axsome with an Overweight rating and a $163 price target, noting the company’s plans to submit a supplemental New Drug Application for AXS-05 in 2025. In response to a generic challenge, both H.C. Wainwright and Mizuho reiterated their positive outlooks, with price targets of $180 and $200, respectively. Axsome recently disclosed receiving a Paragraph IV Certification Notice from Apotex, which is seeking FDA approval for a generic version of Symbravo. These developments highlight Axsome’s ongoing strategic efforts and market positioning.
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