Axsome Therapeutics: A Promising Growth Stock with Robust Pipeline and Strong Financials

William Blair analyst Myles Minter has reiterated their bullish stance on AXSM stock, giving a Buy rating today.

Myles Minter has given his Buy rating due to a combination of factors that highlight Axsome Therapeutics as a promising investment opportunity. The company is positioned as a growth stock with three FDA-approved products and several others in the pipeline, including three at the NDA stage and four in Phase III clinical trials. This robust pipeline suggests a potential for seven new drug launches by 2027, which could significantly boost the company’s revenue prospects.
Minter also notes the financial stability of Axsome Therapeutics, with $300.9 million in cash to support operations until they achieve cash flow positivity. The company’s management has expressed confidence in reaching $1 billion in peak sales for Auvelity, with potential to reach $3 billion. Additionally, Axsome’s strategic approach and differentiated clinical data for its products, such as Symbravo, further support the company’s growth potential, making it a strong candidate for a core holding in the biotech sector.

In another report released today, Oppenheimer also initiated coverage with a Buy rating on the stock with a $185.00 price target.

Based on the recent corporate insider activity of 12 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AXSM in relation to earlier this year.