RBC Capital Raises Price Target#
RBC Capital has increased its price target for Axsome Therapeutics (NASDAQ:AXSM) from $242 to $302 while maintaining an Outperform rating. Currently, the stock is trading at $223.32, close to its 52-week high of $217, reflecting an impressive 84% gain over the past year.
Earnings Report Highlights#
The adjustment in price target follows Axsome's first-quarter 2026 earnings report. The company’s drug, Auvelity, used for treating major depressive disorder, showed a slight revenue increase, although expenses rose faster than expected as the company prepares for its upcoming launch in June. Axsome has raised its peak revenue expectation for Auvelity significantly, now estimating it could reach $8 billion, up from a previous range of $2.5 billion to $6 billion. This new guidance includes sales from both major depressive disorder and the upcoming launch.
Financial Performance#
In the earnings report, Axsome reported a revenue growth of 65.55% with a high gross profit margin of 92.56%. However, some analyses suggest that the stock may be overvalued compared to its Fair Value. Despite this, RBC Capital noted that the company has several upcoming catalysts in 2026 that could enhance its growth potential.
Analyst Reactions#
Despite missing earnings per share (EPS) and revenue expectations, analysts remain optimistic about Axsome's future. The company reported an EPS of -$1.26, which was below the expected -$0.83, and revenue of $191.2 million, slightly missing the forecast of $193.46 million. However, Auvelity sales were strong, with net sales of $153.2 million surpassing the consensus estimate of $148.2 million. Following these results, several firms, including Oppenheimer and Guggenheim, have also raised their price targets for Axsome, reflecting a positive outlook despite the earnings miss.