Analysts’ recommendations and target price
Wall Street analysts expect an upside potential of 88.28% for Axsome Therapeutics (AXSM) based on the company’s closing price on March 26. Analysts first revised downwards the company’s target price from $24.00 in January to $23.25 in February but then revised it upwards to $27.00 in March. The current consensus analyst recommendation for the stock is a “strong buy.”
Of the four analysts covering Axsome Therapeutics, two are recommending a “strong buy,” and two are recommending a “buy.” On March 26, Axsome Therapeutics closed at $14.34, 12.24% lower than its previous closing price, 639.18% higher than its 52-week low of $1.94 and 12.45% lower than its 52-week high of $16.38. The company’s market capitalization is $485.98 million, and thus is a small capitalization stock. Axsome Therapeutics may prove to be a riskier investment for the retail investor as compared to the broader market or large-cap stocks.
Based on its closing price on March 26, Axsome Therapeutics has reported returns of 10.73% in the last week, 55.36% in the last month, and 551.82% in the last quarter. The company has reported returns of 341.23% in the last half year, 446.29% in the last year, and 408.51% YTD.
In the fourth quarter, Axsome Therapeutics reported non-GAAP EPS of -$0.32, which is lower than the consensus estimate by $0.03. According to the company’s fourth-quarter earnings investor presentation, Axsome Therapeutics is currently studying four investigational therapies such as AXS-05 in treatment-resistant depression, agitation in Alzheimer’s disease, major depressive disorder, and smoking cessation indications, AXS-07 in the migraine indication, AXS-12 in the narcolepsy indication, and AXS-09 in CNS (central nervous system) disorders. The company expects to enjoy patent protection for these therapies until 2034 or 2036.
According to the company’s fourth-quarter earnings investor presentation, Axsome Therapeutics has cash worth $52.6 million on its balance sheet. The company expects to sustain its operations at least until the fourth quarter of fiscal 2021 with its own cash balance.