BofA said concerns about adoption of Axsome’s Alzheimer’s agitation treatment and its ability to meet full-year 2027 revenue estimates have weighed on shares.

  • BofA lowered its price target on Axsome to $264 from $276 but maintained a ‘Buy’ rating, representing an 85% upside potential.
  • TD Cowen analyst Joseph Thome reiterated a ‘Buy’ rating with a $135 price target, calling shares ‘significantly undervalued.’
  • Axsome reported a 52% surge in Q3 revenue to $259.7 million, above estimates of $249.2 million, according to Fiscal.ai

Shares of Axsome Therapeutics (AXSM) have declined nearly 20% over the past month, but Wall Street believes the selloff may be excessive despite concerns surrounding the company’s Alzheimer's disease agitation treatment launch.

AXSM stock was up 5% at the time of writing, having fallen to a 52-week low in the previous session.

BofA Still Sees Significant Upside

BofA lowered its price target on Axsome to $264 from $276 but maintained a ‘Buy’ rating, according to The Fly. The updated price target still implies a roughly 85% upside from current levels.

The firm said that while Axsome’s third-quarter (Q3) results were largely in line with expectations, investors remain concerned about the pace of the Alzheimer’s agitation treatment launch and whether the company can meet full-year 2027 estimates.

BofA said concerns about the slower-than-expected adoption of Axsome’s Alzheimer’s agitation treatment and its ability to meet full-year 2027 revenue estimates have weighed on shares, but the firm believes the selloff is excessive given the drug’s long-term growth potential.

Meanwhile, Baird lowered its price target on Axsome to $220 from $246 and keeps an Outperform rating on the shares. 

Axsome’s Q3 Revenue Growth Driven By Auvelity Sales

Axsome reported a 52% surge in third-quarter (Q3) revenue to $259.7 million, above estimates of $249.2 million, according to Fiscal.ai. Auvelity drove the growth, with sales up 53% to $207.6 million.

The company reported a loss of $0.25 per share, beating consensus estimates of a $0.64 per-share loss. Axsome ended September with $313.9 million in cash and expects its existing funds to support operations until it becomes cash-flow positive.

Auvelity, an oral medication, was originally approved in 2022 to treat major depressive disorder. In April, 2026, the FDA approved Auvelity for agitation associated with Alzheimer’s dementia. Axsome launched the treatment for this new use in June 2026.

Retail’s Take On AXSM

Retail sentiment surrounding AXSM on Stocktwits remained ‘extremely bullish’ over the past 24 hours, amid ‘extremely high’ message volumes.

AXSM shares are down nearly 20% year-to-date.

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