Axsome Shows Valuation Disconnect Ahead of Q3, RBC Says

MT Newswires Live10-14

Axsome Therapeutics (AXSM) shares are undervalued after a recent pullback tied to weaker prescription trends, creating a buying opportunity ahead of Q3 results on Nov. 2, RBC said in a report Wednesday.

The note said the stock is now trading at some 15% lower than before the company secured approval of Auvelity for agitation associated with dementia due to Alzheimer's disease in April.

"We think the stock is fundamentally dislocated from fair value, and there could be upside from 3Q26 earnings," the report said.

The report said recent Auvelity prescription trends are more likely the result of seasonal effects and sampling dynamics rather than a sign of launch weakness.

"With shares now at ~$155 given the recent pullback and lower expectations going into the quarter which we think are beatable, we would be buyers at these levels," the note said.

RBC kept its outperform rating with a price target of $295.

Price: 161.88, Change: +5.56, Percent Change: +3.56

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment