BofA raises Syndax stock price target to $26 on strong Q1 update

Published 06/05/2025, 11:30
BofA raises Syndax stock price target to $26 on strong Q1 update

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.