Axsome Therapeutics Stock Is Up 16% Year to Date. Why Wall Street Thinks It Has Even More Room to Run
The company has also crushed broader equities over the past five years.
Axsome Therapeutics (NASDAQ: AXSM) has shown impressive growth this year, with its shares soaring 16% compared to the S&P 500's 11% increase. Analysts are optimistic about the biotech company's potential, with an average price target of $285.42 set by Yahoo! Finance, suggesting a 37% upside from its present valuation.
The positive outlook stems from Axsome Therapeutics' significant clinical and regulatory advancements in recent years. The company secured approval for Auvelity as a treatment for depression and later expanded the medication's usage for managing Alzheimer's disease (AD) agitation. Additionally, Axsome Therapeutics boasts a portfolio of other approved products, including Symbravo for migraine therapy and Sunosi for daytime sleepiness associated with narcolepsy.
The company's revenue has been on a rapid growth trajectory. During the second quarter, Axsome Therapeutics' earnings surged 46% year-over-year, reaching $218.4 million. Auvelity, the primary growth catalyst, drives this upward trend.
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