Axsome Therapeutics (AXSM) is presenting a buying opportunity following a recent pullback in its shares amid no meaningful fundamental changes, RBC Capital Markets said in a note Friday.

The report said the Street was undervaluing the revenue opportunity in agitation disorder heading into the April 30 date for the US Food and Drug Administration to make a decision on its drug candidate AXS-05.

"We still see an 85% chance of approval, and think upside on an approval could be as much as 30%," the report said.

The note pointed to some $1.6 billion potential out-year opportunity in ADA and a growing business in major depressive disorder, in addition to other assets and catalysts.

"The core story remains compelling," the report said. RBC kept its outperform rating and a $222 price target.

Price: 155.46, Change: +1.34, Percent Change: +0.87