Axsome Therapeutics' (AXSM) prospective drug treatment for a common symptom of Alzheimer's disease is likely to keep the stock on an upward trajectory, analysts at Oppenheimer said Tuesday in new coverage.

The analysts see the biopharma company as a uniquely attractive mid-cap boasting growing sales and an expanding pipeline with several strong near-term catalysts.

The Oppenheimer analysts began coverage of Axsome with an outperform rating and an $185 price target.

All three of the neuroscience company's medications currently on the market are showing positive momentum, they said. Doctors have prescribed Axsome's Auvelity drug to treat major depressive disorder to around 167,000 US patients, with sales during the first three months of 2025 topping $96 million, they added.

Auvelity (AXS-05) also is seeing strong demand from prescribers, the analysts said, because of its rapid efficacy and relatively mild side effects. It has secured 78% payor coverage since its late 2022 launch and Oppenheimer expects the reimbursement rate will increase, supported by patent protections through 2038 and new hires for Axsome's sales force.

Axsome recently reported positive results from phase 3 testing of AXS-05 to also treat agitation associated with Alzheimer's disease. The company currently is expecting to file a supplemental new drug application with the US Food and Drug Administration later this summer.

The analysts believe AXS-05 will be competitive with rival medication already on the market. They also expect success for Axsome's drug therapies for narcolepsy, binge-eating and shift-work disorders as well as a new treatment for acute migraines slated to launch this month.

Capping their optimism for Axsome, the analysts said the company has a strong balance sheet and management execution.

Price: 110.34, Change: +2.68, Percent Change: +2.49