Does an $11.5 Billion Opportunity Make This Growth Stock a Buy Now?
Axsome Therapeutics (NASDAQ: AXSM) stock jumped more than 10% on June 14 after the company made its latest investor presentation public. The market was reacting to new estimates that suggest peak annual U.S. sales of up to $11.5 billion for the drugs it sells now and the ones it still has in development.
Even after the recent run-up, this company's market cap is just $3.5 billion, and commercial-stage biotech stocks tend to trade at mid-single-digit multiples of their sales. In other words, investors who buy the stock now could earn better than a 10-fold return if the company actually reaches the expectations it laid out for investors. And that's before factoring in sales outside of the U.S.
If you've paid much attention to the biopharmaceutical industry, you know that most companies in it fail to meet expectations. So before you open the brokerage app on your phone to pounce on what looks at first glance like an amazing opportunity, let's take a closer look at what went into that $11.5 billion estimate.
Source Fool.com
Axsome Therapeutics Inc Stock
With 0 Sell predictions and 1 Buy predictions the community sentiment towards the Axsome Therapeutics Inc stock is not clear.
With a target price of 100 € there is a positive potential of 26.74% for Axsome Therapeutics Inc compared to the current price of 78.9 €.
