Tuesday, Baird initiated coverage on shares of Axsome Therapeutics (NASDAQ:AXSM), assigning the stock an Outperform rating and setting a price target of $108.00. The firm has expressed confidence in the company's upcoming clinical trial results, particularly for its AXS-05 drug, which is currently in phase 3 trials for Alzheimer's disease agitation, expected in the second half of 2024.
The analyst from Baird cited the relatively high probability of success for AXS-05's phase 3 results as a key factor in the positive outlook. Additionally, the firm is optimistic about the phase 3 results for AXS-12 in narcolepsy, which are anticipated to be released this month. These upcoming milestones have contributed to the favorable assessment of Axsome's stock.
Axsome Therapeutics has seen significant sales from its drug Auvelity, designed to treat major depressive disorder, which brought in $130 million in 2023 during its first full year on the market. The Baird analyst expects that the sales trajectory for Auvelity will continue to be strong throughout 2024, supporting the company's financial position and growth prospects.
The analyst's comments underscore the potential of Axsome's pipeline and its ability to address critical needs in the treatment of central nervous system disorders. With the anticipated clinical trial results and strong sales performance of its existing product, Axsome Therapeutics is positioned for a potentially transformative year.
Investors have responded positively to the analyst's coverage, with the Outperform rating reflecting a belief in Axsome's ability to exceed the general expectations of the market.
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