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On Tuesday, BofA Securities analyst Jason Zemansky increased the price target for Syndax Pharmaceuticals (NASDAQ:SNDX) to $26.00, up from the previous $25.00, while reaffirming a Buy rating for the company’s shares. Zemansky highlighted the company’s positive first-quarter performance, noting that the results align with BofA’s optimistic projections. According to InvestingPro data, the company, currently valued at $1.17 billion, has demonstrated strong momentum with a positive return over the last month, despite trading significantly below its 52-week high of $25.07.
Syndax’s financial update revealed robust sales from its recently launched products. Revuforj exceeded expectations, generating $20 million in sales compared to the consensus estimate of $12 million. Niktimvo also performed well, contributing to the company’s solid quarter. These successes, according to Zemansky, have overshadowed the company’s GAAP earnings per share, which was reported at $0.98 and met analyst expectations. InvestingPro analysis shows that while the company maintains strong liquidity with a current ratio of 5.82, it currently faces challenges with weak gross profit margins.
The analyst pointed out that while it is still early days for the product launches, the initial sales figures should alleviate some investor concerns, especially as the company faces a more challenging second half of the year. Revuforj, in particular, is seen as a key driver for Syndax’s future growth.
Syndax’s management has provided positive feedback, leading to the possibility of a reset in expectations based on the company’s strong foundation. Zemansky suggested that increasing use in the larger NPM1m population could further strengthen Syndax’s market position. He cited prescriber familiarity and groundwork laid with payers as factors that may support the company’s standing even in a competitive market.
Despite uncertainties, BofA Securities remains confident in Syndax’s ability to capture a significant share of the market. The firm’s analysis suggests that the current stock price does not fully reflect the near-term opportunities for Syndax, with BofA’s 2026 revenue estimate for the company at $252 million compared to the consensus estimate of $168 million. InvestingPro data reveals impressive projected revenue growth of 222% for FY2025, supporting this optimistic outlook. For deeper insights into Syndax’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers. This optimistic outlook led to the decision to raise the price target to $26 and maintain a Buy rating on Syndax Pharmaceuticals stock.
In other recent news, Syndax Pharmaceuticals reported strong financial results for the first quarter of 2025, surpassing earnings expectations. The company achieved an earnings per share (EPS) of -0.98, exceeding the forecasted -1.24, and reported revenue of $20.04 million, significantly higher than the anticipated $14.84 million. This performance was driven by robust sales of their medicines, RevuForge and Nictimvo, which show promising market potential. Syndax Pharmaceuticals holds $602.1 million in cash and equivalents as of March 31, 2025, providing a solid financial foundation for future initiatives.
Additionally, the company is optimistic about further growth, driven by strategic product launches and market expansions. Syndax has also submitted a supplemental new drug application for RevuForge to the FDA, seeking priority review for the treatment of relapsed or refractory mutant NPM1 AML. Analysts from firms such as JPMorgan and Barclays (LON:BARC) have shown interest in the company’s progress, reflecting the positive market sentiment following Syndax’s earnings report. The company remains focused on achieving profitability through its strategic initiatives, while continuing to address ongoing financial challenges.
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