Axsome Therapeutics, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Sean Laaman from Morgan Stanley maintained a Buy rating on the stock and has a $191.00 price target.
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Sean Laaman has given his Buy rating due to a combination of factors that highlight Axsome Therapeutics’ strong performance and future potential. The company reported second-quarter sales of Auvelity that exceeded expectations, with revenues reaching $120 million, surpassing both Morgan Stanley’s estimate and consensus forecasts. This growth indicates a positive trajectory in the major depressive disorder market, with a significant portion of new prescribers being general practitioners, suggesting increased market penetration.
Additionally, Axsome’s recent sales force expansion has shown promising results, with an uptick in new patient starts, which is a positive indicator for future total prescription growth. Despite the modest initial sales of Symbravo in the acute migraine market, the company’s strategic use of sampling and patient savings programs is expected to support future growth. Furthermore, Axsome’s financial position appears robust, with sufficient cash reserves to fund operations until they achieve cash flow positivity, providing a solid foundation for continued development and expansion.
In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $176.00 price target.