Figma Shares Indicated To Open $105/$110
Tuesday, Axsome Therapeutics (NASDAQ:AXSM), currently valued at $5.2 billion, received a slight boost in their price target from RBC Capital Markets, now set at $193.00, up from $193.00, while the firm retained an Outperform rating on the stock. According to InvestingPro data, the stock is currently trading at $107.24, with analyst targets ranging from $143 to $216, suggesting potential upside. The adjustment follows RBC Capital’s survey of 35 neurologists who treat Alzheimer’s disease, aiming to gauge the potential market reception for Axsome’s AXS-05.
The survey results indicated strong support for AXS-05 among the medical professionals, with two-thirds expressing excitement about the drug’s profile. Moreover, all participating neurologists anticipated prescribing the drug to some extent, suggesting that approximately 55% of patients with agitation related to Alzheimer’s could end up being treated with AXS-05. This potential market opportunity comes as Axsome demonstrates impressive revenue growth of 42.5% and maintains exceptional gross profit margins of 91.4%, according to InvestingPro analysis.
RBC Capital’s analyst highlighted the positive sentiment among physicians regarding the drug’s potential market launch and expressed confidence in the drug’s approval prospects. The analyst’s optimism is also based on Axsome’s status as a revenue-generating biotech company, which could provide some protection against sector-specific challenges such as tariff, intellectual property, and pricing pressures.
The increased target price to $193 reflects updates to the firm’s financial model. The analyst’s commentary underscores the belief that the current market levels present a buying opportunity for investors interested in Axsome Therapeutics’ stock.
Axsome Therapeutics is actively working towards bringing AXS-05 to market, and the feedback from the neurologist community appears to be a strong indicator of the drug’s potential success in treating agitation in Alzheimer’s patients. As the company awaits approval, the market’s anticipation is reflected in the analyst’s positive outlook and the revised price target. With earnings expected in 6 days, investors seeking deeper insights can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, which provide expert analysis on Axsome and 1,400+ other top stocks.
In other recent news, Axsome Therapeutics has announced positive trial results for its Alzheimer’s and migraine treatments, presented at the American Academy of Neurology Annual Meeting. The ACCORD-2 Phase 3 trial of AXS-05 for Alzheimer’s disease agitation showed efficacy and safety, while AXS-12 was effective in treating narcolepsy, both receiving designations from the FDA. However, Axsome’s Phase 3 PARADIGM trial for solriamfetol in major depressive disorder (MDD) did not meet its primary endpoint, prompting plans for a new trial focused on MDD patients with severe excessive daytime sleepiness (EDS) in 2025.
Jefferies has initiated coverage on Axsome with a Buy rating and a $200 price target, highlighting potential catalysts such as the sales growth of Auvelity and product launches like Symbravo for migraine. Meanwhile, BofA Securities and Guggenheim analysts have reiterated Buy ratings with price targets of $174 and $195, respectively, noting the challenges in MDD studies but emphasizing Axsome’s promising pipeline. Mizuho (NYSE:MFG) Securities also maintains an Outperform rating with a $216 price target, expressing confidence in Axsome’s long-term growth potential despite recent trial setbacks. The company continues to focus on addressing unmet needs in central nervous system disorders, with multiple product launches anticipated by 2026.
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