Morgan Stanley Remains Bullish on Axsome (AXSM), Reiterates $190 PT

In a report dated May 30, Morgan Stanley analyst Vikram Purohit reaffirmed his Buy rating on Axsome Therapeutics Inc. (NASDAQ:AXSM), with an unchanged price target of $190.

Purohit’s continued optimism is primarily driven by the strong commercial performance of Auvelity, the company’s treatment for major depressive disorder (MDD). He considers Auvelity’s performance strong, considering the persisting weakness in the antidepressant market.

A medical researcher in a lab coat examining biotechnology products in a laboratory.

Since its approval in August 2022 and launch in October 2022, the drug has continued to gain traction, with prescription volumes rising and new patient starts increasing in the first quarter of 2025.

Purohit sees this growth as a sign of resilient demand. He also projects Auvelity could generate around $480 million in revenue by 2025, with the potential to reach $1 billion by 2027, underscoring its longer-term commercial potential.

In his view, Axsome is executing well commercially, and Auvelity is gaining ground in a challenging market—factors that support his positive stance on the stock.

Axsome is an American biopharmaceutical company that develops and delivers therapies for the management of central nervous system disorders.

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Disclosure: None.