AXSM Stock Rises After Analyst Hikes Price Target On Auvelity Drug Optimism

• Piper said it met with Axsome’s senior management recently, and gained more insights into commercial dynamics surrounding Auvelity in agitation associated with Alzheimer's disease.
• Auvelity is already approved by the U.S. Food and Drug Administration for treating major depressive disorder.
• For the full year 2025, the company expects $638.5 million in total product revenue, including  $507.1 million from Auvelity.

Shares of Axsome Therapeutics (AXSM) closed 2% higher on Friday after Piper Sandler hiked its price target to $223.

The firm kept an ‘Overweight’ rating on the shares and raised the price target to $223 from $148, as per TheFly. The new price target represents a potential upside of about 26% from the stock’s closing price on Friday.

Piper Sees Upsides

Piper said it met with Axsome’s senior management recently, and gained more insights into commercial dynamics surrounding Auvelity in agitation associated with Alzheimer's disease.

Auvelity is already approved by the U.S. Food and Drug Administration (FDA) for treating major depressive disorder. Piper believes that a label expansion for the drug to include agitation associated with Alzheimer's is “highly likely.” The company submitted an application for the same in late December and the FDA is now expected to decide on the application by April 30, 2026.

Preliminary Revenue Numbers

Earlier this week, Axsome said that it expects total product revenue of $196 million for the fourth quarter, marking a growth of 65% year-over-year. For the full year 2025, the company expects $638.5 million in total product revenue, including  $507.1 million from Auvelity.  This exceeds an analyst estimate of total revenue of $619.75 million for the year, as per data from Fiscal AI.

Other FDA-approved treatments from Axsome cater to excessive daytime sleepiness associated with narcolepsy and obstructive sleep apnea, and migraine. The company is also developing new drugs to address a range of serious neurological and psychiatric conditions.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around AXSM stock stayed within the ‘bullish’ territory over the past 24 hours, while message volume fell from ‘normal’ to ‘low’ levels.

AXSM stock has nearly doubled its value over the past 12 months.  

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