Analyst Jason Gerberry from Bank of America Securities maintained a Buy rating on Axsome Therapeutics (AXSM – Research Report) and increased the price target to $174.00 from $167.00.
Jason Gerberry’s rating is based on the promising results from Axsome Therapeutics’ Phase 3 trial for Sunosi in treating adult ADHD. The trial demonstrated that the low-dose solriamfetol achieved significant improvements in ADHD symptoms compared to placebo, suggesting it is an effective treatment option. Despite the competitive market, Gerberry believes that the drug’s favorable safety profile and lower abuse potential compared to stimulants provide a unique advantage.
Furthermore, Gerberry maintains a Buy rating due to the underappreciated peak sales potential of Axsome’s products relative to current stock valuations. While the market for ADHD treatments is saturated, the company’s strategic positioning and the consistency of the trial results support a positive outlook. The price objective of $174 reflects confidence in Axsome’s ability to capitalize on its niche market opportunities, despite the challenges of entering a crowded field.
In another report released yesterday, Guggenheim also reiterated a Buy rating on the stock with a $195.00 price target.
AXSM’s price has also changed moderately for the past six months – from $89.920 to $120.360, which is a 33.85% increase.