Truist Reaffirms Buy and $200 Target
Truist Securities has reiterated a Buy rating on Axsome Therapeutics and maintained a $200 price target. The firm noted Axsome's market capitalization of $8.73 billion and observed that analyst price targets on the stock have ranged from $153 to $260.
Commercial Preparations Ahead of Regulatory Milestone
Truist highlighted Axsome's decision to grow its sales organization by 300 representatives in advance of an April 30 FDA decision date for its ADA treatment. The firm said management expects that, if approved, the ADA therapy could reach the market roughly one quarter after receiving regulatory clearance. The sales-force expansion was described as positioning the company to realize commercial synergies with Auvelity, its major depressive disorder treatment, and to capitalize on any market shifts following an ADA approval.
Key opinion leaders interviewed by Truist indicated that AXS-05 would be prescribed ahead of antipsychotics, including Rexulti, if the ADA treatment receives approval. The broker emphasized that such shifts in prescribing patterns could reinforce Axsome's commercial opportunities across its portfolio.
Financial Efficiency and Expense Focus
Truist singled out operating expenses as a focal point for investors, noting that in 2025 revenue has grown three times faster than operating expenses. The company’s recent financial profile includes a reported 91.86% gross profit margin and a 65.83% increase in revenue over the last twelve months, figures the firm used to illustrate Axsome’s reported financial efficiency.
Pipeline and Potential Product Overlap
Axsome is expected to file a new drug application for AXS-12, a treatment candidate for narcolepsy, this quarter. Truist commented that AXS-12 could share commercial synergies with Sunosi, suggesting opportunities to leverage existing commercial channels if the NDA is submitted and later approved.
Valuation Signal and Subscriber Tools
An external platform analysis cited in the research indicated the stock currently trades below its assessed Fair Value and appears on that platform’s Most Undervalued list. That analysis also noted that subscribers to the service have access to 10 additional proprietary tips and detailed financial metrics for AXSM.
Recent Earnings and Market Response
Axsome reported fourth-quarter results that outpaced analyst expectations. The company confirmed Auvelity revenues of $155.1 million for the quarter, consistent with a prior pre-announcement. Management reported an 8% rise in prescriptions to approximately 225,000, attributing the increase to growth within the primary care physician segment. Despite the stronger-than-expected results, the stock dipped slightly in pre-market trading following the announcement.
Other Analyst Movements
In separate coverage, TD Cowen raised its price target on Axsome to $215 from $195 while maintaining a Buy rating, a move described as reflecting optimism about Auvelity’s continued growth.
This collection of developments - regulatory timing, commercial expansion, recent revenue strength, and other analysts’ actions - frames current investor attention on Axsome as it approaches a key FDA decision and advances its pipeline.