H.C. Wainwright Believes Axsome Therapeutics Inc (NASDAQ: AXSM) Still Has Room to Grow

In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Axsome Therapeutics Inc (AXSMResearch Report), with a price target of $30. The company’s shares closed yesterday at $25.50, close to its 52-week high of $28.70.

Selvaraju said:

“We utilize a risk-adjusted net present value (rNPV) approach to assessing Axsome shares. We apply an 18% discount rate to all future cash flows along with a 28.1% effective tax rate and 33% sales and marketing rate. Our approach yields a total firm value of roughly $1.4B, or a price per share of roughly $30 given about 45M fully-diluted shares outstanding as of mid-2020, which includes the issuance of about 7.1M shares of common stock and exercise of 3.3M currently-outstanding options and warrants.”

According to TipRanks.com, Selvaraju ‘s ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -11.2% and a 26.2% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Taro Pharmaceutical Industries Ltd., Biospecifics Technologies Corp, and Stealth Biotherapeutics Corp.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Axsome Therapeutics Inc with a $38.33 average price target.

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The company has a one-year high of $28.70 and a one-year low of $1.94. Currently, Axsome Therapeutics Inc has an average volume of 1.15M.

Based on the recent corporate insider activity of 7 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AXSM in relation to earlier this year.

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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.