B.Riley Starts Axsome Therapeutics (AXSM) at Buy

B.Riley analyst Madison El-Saadi initiates coverage on Axsome Therapeutics (NASDAQ: AXSM) with a Buy rating and a price target of $179.00.

The analyst comments: "AXSM is a multi-product pure-play neuro growth story with Auvelity depression (MDD) revenue powering a dense 2nd/3rd wave of pipeline-in-a-product drugs in large-TAM indications. While investors have mostly overlooked minor regulatory/clinical missteps, we believe a window is open for entry ahead of 3Q earnings, a 2nd wave of potential 2026 approvals, and initiation of a third wave of late-stage candidates in 4Q25E. We model AXSM EV/sales at 4x based on FY27E revenue, just below its current 4.4x multiple and peer group median (2.6x), well warranted, in our view, given consensus Y/Y growth of 52%/40% in FY25E/26E vs. peer medians of 15%/11%. Alongside a superior growth trajectory, FY25E opex runs 15% below peers, showing operational leverage from targeting adjacent indications with overlapping prescribers. AXSM's late-stage pipeline includes multiple hidden low-hanging opportunities not currently in our model. We estimate that the totality of comps support sustained multiple expansion as AXSM nears potential CF positivity within 9 months and substantial FCF growth thereafter."

For an analyst ratings summary and ratings history on Axsome Therapeutics click here. For more ratings news on Axsome Therapeutics click here.

Shares of Axsome Therapeutics closed at $121.45 yesterday.

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