Analysts rate Axsome Therapeutics Inc. (AXSM:NSD) with a Buy rating and a $92 target

Jefferies Financial LLC targets down the Axsome Therapeutics stock price to $90.

Based on the Axsome Therapeutics Stock Forecast from 8 analysts, the average analyst AXSM stock price target is USD 92.86 over the next 12 months. Axsome Therapeutics Inc’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of AXSM stock froecast is Bearish, which is based on 2 positive signals and 6 negative signals. At the last closing, AXSM stock price was USD 46.21AXSM stock price has changed by -2.29% over the past week, -14.74% over the past month and +13.76% over the last year.

 

About Axsome Therapeutics Inc. (AXSM:NSD):

Axsome Therapeutics, Inc., a biopharmaceutical company, engages in the development of novel therapies for central nervous system (CNS) disorders in the United States. The company’s product pipeline includes AXS-05, a therapeutic for the treatment of major depressive disorder and resistant depression disorders; and that is in the Phase III clinical trial to treat Alzheimer’s disease agitation, as well as that has completed phase II clinical trial for the treatment of smoking cessation. Axsome Therapeutics, Inc. has a research collaboration agreement with Duke University for evaluating AXS-05 in smoking cessation. The company was incorporated in 2012 and is based in New York, New York.

 

What we like:

High market capitalization

AXSM stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

Axsome Therapeutics stock has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

 

What we don’t like:

High volatility

The total returns for AXSM stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to book value

AXSM stock price is trading high compared to its peers median on a price to book value basis.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Negative free cash flow

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth

Axsome Therapeutics stock has shown below median earnings growth in the previous 5 years compared to its sector.