Aegis Capital Thinks Axsome Therapeutics Inc’s Stock is Going to Recover

By Carrie Williams

Aegis Capital analyst Difei Yang reiterated a Buy rating on Axsome Therapeutics Inc (NASDAQ: AXSM) today and set a price target of $20. The company’s shares closed yesterday at $4.10, close to its 52-week low of $3.53.

Yang said:

“We recently met with Axsome Therapeutics CEO Herriot Tabuteau and VP of Operations Mark Jacobson. We believe that the recent $16.1 million public offering provides cash through several key data readouts culminating in 1Q19. In our view, the raise helps to remove investor concern regarding financing and provides opportunities for re-evaluation. We reiterate our Buy rating and $20 PT. Key upcoming catalysts are below: COAST-1 interim futility analysis in 3Q17: Enrollment in the Phase III trial for AXS-02 in patients with knee osteoarthritis (OA) was suspended prior to the capital raise as a capital allocation effort. We agree with management’s decision to re- allocate resources to develop more promising indications such as complex regional pain syndrome (CRPS) and the AXS-05 program, particularly because we believe the knee OA space is challenging. A DSMB will provide interim analysis on the first 60 patients to assess futility, and will decide whether enrollment should continue or the trial be halted.”

According to TipRanks.com, Yang is a 4-star analyst with an average return of 6.3% and a 44.9% success rate. Yang covers the Healthcare sector, focusing on stocks such as IntelliPharmaCeutics International, Protalix Biotherapeutics, and Spectrum Pharmaceuticals.

Currently, the analyst consensus on Axsome Therapeutics Inc is Strong Buy and the average price target is $15.67, representing a 282.2% upside.

In a report issued on May 19, BTIG also initiated coverage with a Buy rating on the stock with a $14 price target.

The company has a one year high of $9.11 and a one year low of $3.53. Currently, Axsome Therapeutics Inc has an average volume of 253.7K.

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Axsome Therapeutics, Inc. is a clinical stage biopharmaceutical company, which engages in developing novel therapies for the management of central nervous system disorders. Its product candidates include AXS-02 and AXS-06 which are developing for multiple indications. The company was founded by Herriot Tabuteau on January 12, 2012 and is headquartered in New York, NY.