TD Cowen Adjusts Price Target#
TD Cowen has raised its price target for Axsome Therapeutics (NASDAQ:AXSM) from $255 to $275, while maintaining a Buy rating on the stock. This adjustment comes after the company reported impressive first-quarter results.
Strong Revenue Growth#
In the first quarter, Axsome generated revenues of $191 million, marking a 57% increase compared to the same period last year. This figure slightly surpassed the consensus estimate of $188 million. The company's revenue growth of 66% over the past year is attributed to effective commercial strategies, and it boasts a high gross profit margin of 93%. Notably, sales of Auvelity, a key product, reached $153 million, exceeding the expected $148 million.
Upcoming Product Launch#
Axsome is on track to launch Auvelity for treating atypical depression in June. Management has raised the peak sales estimate for Auvelity to $8 billion, indicating strong confidence in the product's potential in the market. TD Cowen has also adjusted its peak sales estimate for atypical depression to $1.75 billion based on recent surveys, contributing to the increased price target.
Earnings Report Insights#
Despite the positive revenue figures, Axsome's earnings per share (EPS) for Q1 2026 was -$1.26, which fell short of the forecasted -$0.83. Additionally, the reported revenue of $191.2 million was slightly below the anticipated $193.46 million. These results highlight a disconnect between actual performance and market expectations. However, the stock experienced a surge, suggesting that investors remain optimistic about the company's strategic developments and upcoming product approvals, despite the earnings miss.