Axsome Therapeutics (AXSM) has received a new Buy rating, initiated by Jefferies analyst, Andrew Tsai.
Andrew Tsai’s rating is based on Axsome Therapeutics’ promising pipeline and growth potential in the CNS/neuro market. The company currently markets three products with expectations for two additional launches in the coming years, which could significantly boost sales. Auvelity, a key product for major depressive disorder, is projected to achieve peak sales of $1.5-2 billion, providing substantial valuation support.
Furthermore, there is a strong confidence in the approval of Auvelity for Alzheimer’s agitation by 2026, which would open up another billion-dollar opportunity. The anticipated launches of other CNS products in 2025-26, along with potential expansion opportunities for existing products, are expected to drive significant revenue growth. These factors, combined with a strategic focus on high-margin products and potential profitability by 2026, underpin the Buy rating for Axsome Therapeutics.
Tsai covers the Healthcare sector, focusing on stocks such as Supernus Pharmaceuticals, Sarepta Therapeutics, and Axsome Therapeutics. According to TipRanks, Tsai has an average return of 1.6% and a 49.19% success rate on recommended stocks.
In another report released on April 3, RBC Capital also maintained a Buy rating on the stock with a $190.00 price target.