Wells Fargo Initiates Axsome Therapeutics with Overweight Rating, $163 Price Target

Axsome Therapeutics has been initiated with an Overweight rating and $163 price target at Wells Fargo. Analysts are optimistic about the approval of AXS-05 for Alzheimer's disease agitation, despite mixed clinical data. The FDA may approve the drug based on its potential to address unmet needs in this indication.

Axsome Therapeutics (NASDAQ: AXSM) has been initiated with an Overweight rating and a $163 price target by Wells Fargo, reflecting optimism for the approval of AXS-05 in Alzheimer's disease agitation. Despite mixed clinical data, analysts believe the FDA may demonstrate flexibility due to the urgent unmet need in this patient population. Wells Fargo assigns a 75% probability of success for first-pass approval following the company’s planned submission in the third quarter of 2025 [1].

Wells Fargo analysts highlight the potential of AXS-05 to become a significant growth driver for Axsome. The company has already generated topline revenue with three approved drugs and is targeting cash flow positivity. In the second quarter of 2025, Axsome reported a GAAP EPS of -$0.97, beating expectations by $0.15, and revenue of $150.04M, surpassing projections by $12.02M [2].

Year-to-date, AXSM shares have risen approximately 44%, but the stock is down about 1% today. Axsome's recent setbacks and wins have not deterred Wells Fargo from maintaining a bullish outlook, particularly on the potential of AXS-05 to address the critical need in Alzheimer's disease agitation.

References:
[1] https://seekingalpha.com/news/4491842-axsome-initiated-with-overweight-at-wells-fargo-on-alzheimers-drug-potential
[2] Axsome Therapeutics, Inc. (AXSM) Q2 2025 Earnings Call Transcript