RBC Capital reiterated its Outperform rating on Axsome Therapeutics and maintained its $295.00 price target.
The stock fell roughly 28% over the past month, compared with a 6% decline in the XBI index. RBC attributed the underperformance to seasonal prescription trends and sampling dynamics, rather than fundamental weakness in the product launch.
RBC said the stock’s current price of around $155-$156 is disconnected from its fair value. The bank views lower market expectations as beatable ahead of the next quarterly report.
RBC reaffirmed its estimate of a $2.3 billion market opportunity for Axsome’s treatment for agitation associated with Alzheimer’s disease by 2035. It said the recent pullback presents a buying opportunity.