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 $18. The company’s shares closed yesterday at $16.34, close to its 52-week high of $16.38.

Selvaraju commented:

“We utilize a risk-adjusted net present value (rNPV) approach to assessing Axsome shares. We apply a 20% 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 $735M, or a price per share of roughly $18 given about 40M fully-diluted shares outstanding as of end-2019, which includes the exercise of 4.8M 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 -5.6% and a 29.6% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Biospecifics Technologies Corp, EyePoint Pharmaceuticals Inc, and Bausch Health Companies Inc.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Axsome Therapeutics Inc with a $21 average price target, which is a 28.5% upside from current levels. In a report issued on March 14, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $16 price target.

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Based on Axsome Therapeutics Inc’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $9.6 million. In comparison, last year the company had a GAAP net loss of $7.43 million.

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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.