Buy Rating Affirmed for Axsome Therapeutics on Robust Product Pipeline and Market Growth Potential

In a report released today, Vikram Purohit from Morgan Stanley upgraded Axsome Therapeutics (AXSM – Research Report) to a Buy, with a price target of $115.00.

Vikram Purohit has given his Buy rating due to a combination of factors related to Axsome Therapeutics’ promising pipeline and the market potential of its products. The company’s lead program, Auvelity, has been commercialized for the treatment of major depressive disorder (MDD) and is showing competitive performance compared to similar therapies in the market. The anticipation of Phase III data for the use of Auvelity in Alzheimer’s disease agitation (ADA), despite a delay, remains a significant event that could positively impact the company’s stock value in the latter half of 2024. The current market valuation seems to account for only a modest pipeline value beyond Auvelity’s application in MDD, suggesting potential for growth.

Purohit’s rating also reflects confidence in the potential success of the upcoming ADVANCE-2 trial results, which is expected to provide considerable upside to Axsome’s valuation. He believes that the recent decline in Axsome’s share price, influenced by a delay in the trial and broader market trends, presents an attractive risk/reward scenario for investors. Furthermore, the base business value is supported by Auvelity’s market performance in MDD and the addition of Sunosi to the company’s commercial portfolio. Together, these elements contribute to Purohit’s optimistic outlook on Axsome Therapeutics, reinforcing his Buy recommendation for the stock.

In another report released on April 24, Mizuho Securities also maintained a Buy rating on the stock with a $109.00 price target.

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Axsome Therapeutics (AXSM) Company Description:

Axsome Therapeutics, Inc. is a clinical stage biopharmaceutical company, which engages in developing novel therapies for the management of central nervous system disorders. Its product candidates include AXS-02 and AXS-06 which are developing for multiple indications. The company was founded by Herriot Tabuteau on January 12, 2012 and is headquartered in New York, NY.