Axsome Therapeutics' (AXSM) AXS-05 drug candidate for Alzheimer's disease agitation is set for a "strong" launch, with the potential to reach at least $1.4 billion in peak sales, RBC Capital Markets said in a Monday note.

The brokerage said that the Prescription Drug User Fee Act date for AXS-05 is April 30 and a potential approval could drive the company's stock above $200.

Analysts said AXS-05's profile should appeal to physicians and enable it to outperform the Rexulti drug. RBC estimates about $212 million in sales in fiscal 2027 and $352 million in fiscal 2028.

The rest of Axsome's pipeline, including Sunosi, Symbravo, AXS-12, and AXS-14, has yet to receive full market attention despite being in late-stage development.

The investment firm noted that consensus estimates for AXS-05 remain below other Alzheimer's disease agitation products, suggesting the opportunity is not yet fully reflected in the stock. Analysts added that while RBC's estimates are slightly more conservative than some sell-side forecasts, upside exists if the launch shows strong uptake.

RBC has an outperform rating on the stock and a $219 price target.

Shares of Axsome Therapeutics were up more than 1% in recent trading.

Price: 186.34, Change: +2.09, Percent Change: +1.13