In a report released yesterday, Jason Gerberry from Bank of America Securities reiterated a Buy rating on Axsome Therapeutics (AXSM – Research Report), with a price target of $176.00.
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Jason Gerberry has given his Buy rating due to a combination of factors influencing Axsome Therapeutics’ potential for growth. The company’s first-quarter update showed a modest revenue beat, and the strong script growth for Auvelity, their leading product for major depressive disorder, suggests that revenue projections are prudent and potentially beatable. The patent settlement for Auvelity also enhances visibility on long-term cash flow, with expectations of revenue exceeding $1 billion for MDD alone.
Furthermore, Gerberry highlights the potential for Axsome’s pipeline, particularly the anticipated approval of Auvelity for Alzheimer’s agitation, which could significantly expand its market. The company’s strategic marketing initiatives, including direct-to-consumer advertising and an expanded field force, are expected to bolster Auvelity’s presence in primary care. Additionally, the upcoming submission for the supplemental new drug application for Alzheimer’s disease agitation in the third quarter is seen as a key catalyst, representing a significant opportunity for label expansion.
Gerberry covers the Healthcare sector, focusing on stocks such as Axsome Therapeutics, Jazz Pharmaceuticals, and Alkermes. According to TipRanks, Gerberry has an average return of 3.3% and a 50.51% success rate on recommended stocks.