Oppenheimer initiates Axsome Therapeutics stock with outperform rating

On Tuesday, Oppenheimer analysts initiated coverage on Axsome Therapeutics (NASDAQ: NASDAQ:AXSM) stock with an Outperform rating and set a price target of $185. Currently trading at $107.66 with a market capitalization of $5.3 billion, the stock has shown strong momentum with a 44% return over the past year. The analysts expressed confidence in the mid-cap biopharma company’s potential in the neuroscience sector, highlighting several factors that contribute to this positive outlook. According to InvestingPro, the stock appears to be trading near its Fair Value.

The analysts noted Axsome Therapeutics’ accelerating revenue growth, driven by its three approved products, including Auvelity for major depressive disorder (MDD). InvestingPro data reveals impressive revenue growth of 72% in the last twelve months, accompanied by an exceptional gross profit margin of 91.5%. They emphasized that discussions with key opinion leaders indicate strong adoption of these treatments. Additionally, the company’s broad pipeline, which includes label expansion opportunities and late-stage assets, is considered underappreciated by consensus.

Upcoming catalysts that could unlock further value for Axsome Therapeutics were also highlighted. The analysts pointed out the company’s strong balance sheet, which provides strategic flexibility, and praised the management’s execution and long-term track record. InvestingPro analysis shows the company operates with a moderate level of debt and maintains a healthy current ratio of 2.03, indicating solid short-term liquidity. Get access to 6 more exclusive ProTips and comprehensive financial analysis through InvestingPro.

The period from 2025 to 2026 is seen as transformational for Axsome Therapeutics, with expectations of topline growth and synergies driving profitability by around 2026. Analyst consensus is strongly bullish, with price targets ranging from $146 to $210. The analysts leveraged their expertise in the central nervous system (CNS) field, referencing companies like ACADIA Pharmaceuticals (NASDAQ:ACAD), Biogen (NASDAQ:BIIB), and Neurocrine (NASDAQ:NBIX) Biosciences, to inform their analysis.

Overall, the initiation of coverage with an Outperform rating reflects Oppenheimer’s positive outlook on Axsome Therapeutics’ growth prospects and strategic positioning in the biopharmaceutical industry.

In other recent news, Axsome Therapeutics has reported its first-quarter financial results, revealing a revenue of $121.5 million, which fell short of the forecasted $130.3 million. The company also posted a net loss per diluted share of $1.22, compared to the anticipated $1.06. Despite these figures, H.C. Wainwright maintained a Buy rating on Axsome stock, although they lowered the price target from $200 to $180. Meanwhile, BofA Securities adjusted its price target slightly upward to $176, also maintaining a Buy rating. In addition to financial updates, Axsome has settled a patent dispute with Hetero Labs over the drug SUNOSI, allowing Hetero to market a generic version starting in 2040, pending FDA approval. The company also secured a $570 million credit facility from Blackstone (NYSE:BX), aimed at strengthening its financial position and retiring a previous loan. This financing agreement is expected to accelerate Axsome’s path to profitability and support its CNS treatment development. Axsome’s ongoing efforts include preparing for the launch of SYMBRAVO for migraines, which analysts believe could significantly impact future revenues.

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