Piper Sandler maintains Axsome Therapeutics stock rating with $148 target

Published 17/09/2025, 13:32
Piper Sandler maintains Axsome Therapeutics stock rating with $148 target

Investing.com - Piper Sandler has reiterated its Overweight rating on Axsome Therapeutics (NASDAQ:AXSM), a $5.7 billion market cap biotech company, with a price target of $148.00, following a recent meeting with the company’s senior management. The stock has declined 8% over the past week, according to InvestingPro data.

The research firm gained insights into Axsome’s commercial support strategies for Auvelity in major depressive disorder (MDD) and its potential expansion into agitation associated with Alzheimer’s disease (AD-agitation), as well as Symbravo for acute migraine treatment. The company’s impressive 91.5% gross profit margin and 69.8% revenue growth highlight its commercial success.

Piper Sandler noted that Axsome’s sales and marketing expenditures will continue to increase, including headcount expansion related to the anticipated label expansion for AD-agitation, with management expecting a supplemental New Drug Application submission this quarter.

Despite the increasing expenses, the research firm anticipates significant operating leverage over time, driven by the substantial market opportunities in both MDD and AD-agitation, and favorable payer access to Auvelity in the MDD setting.

The firm expects that major sales force expansions beyond those associated with AD-agitation are unlikely after 2026, with future headcount growth likely to be more incremental.

In other recent news, Axsome Therapeutics has been in the spotlight due to several notable developments. The company is facing a challenge as Apotex Inc. submitted an Abbreviated New Drug Application to the FDA for a generic version of Axsome’s Symbravo medication. This has prompted analysts like H.C. Wainwright and Mizuho to reiterate their Buy and Outperform ratings, with price targets set at $180.00 and $200.00, respectively. Additionally, Cantor Fitzgerald maintained its Overweight rating and $153.00 price target on Axsome, although it slightly reduced its revenue projections for Sunosi, a medication for narcolepsy and obstructive sleep apnea.

Wells Fargo also initiated coverage on Axsome with an Overweight rating, setting a price target of $163.00. This rating coincides with Axsome’s plans to submit a supplemental New Drug Application for its AXS-05 treatment for Alzheimer’s Disease Agitation by the third quarter of 2025. These developments highlight Axsome’s ongoing efforts to expand its product offerings and manage challenges in the pharmaceutical market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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