Why Axsome Therapeutics Stock Is Sinking Today
Shares of Axsome Therapeutics (NASDAQ: AXSM) were sinking 6.8% lower as of 11:29 a.m. EDT on Tuesday. The company announced a $225 million loan facility with Hercules Capital before the market opened. The main reason for Axsome's shares falling, though, was that Bank of America analyst Ashwani Verma initiated coverage on the stock with an underperform rating and a price target of $66 -- more than 13% below the stock's closing price on Monday.
It's usually best to avoid focusing too much on analysts' ratings and price targets. On the other hand, investors are wise to try to understand the rationale behind analysts' views.
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Source Fool.com