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On Monday, B.Riley analyst Kalpit Patel revised the price target for Syndax Pharmaceuticals (NASDAQ:SNDX) stock to $29.00 from the previous $36.00, while reaffirming a Buy rating on the shares. The adjustment followed the company’s fourth-quarter earnings report and the initial sales figures for its drug Revuforj. According to InvestingPro data, SNDX maintains a strong financial position with more cash than debt and a healthy current ratio of 6.99, providing stability for its drug commercialization efforts.
Syndax Pharmaceuticals disclosed its fourth-quarter earnings earlier on Monday, along with the first revenue numbers for Revuforj. The drug, aimed at treating the KMT2Ar patient population, achieved $7.7 million in net sales in the initial five weeks of launch. This figure notably surpassed the consensus forecast of $2 million for the quarter. Based on these results, B.Riley slightly increased its revenue projections for the fiscal year 2025. The broader analyst community remains highly optimistic, with a consensus recommendation of 1.4 (Strong Buy) and price targets ranging from $16 to $51, as reported by InvestingPro.
The company also provided an update on its progress for the NPM1m patient group. Syndax is on schedule to submit a supplemental New Drug Application (sNDA) in the second quarter of 2025. If approved by the Food and Drug Administration (FDA), the drug could be available to patients by the end of the year.
Despite the positive launch metrics for Revuforj, B.Riley has moderated its long-term revenue expectations for the drug’s use in the front-line treatment setting due to the likelihood of heightened competition in the future. Patel’s commentary highlighted the company’s advantageous position in the relapsed/refractory acute myeloid leukemia (r/r AML) market, thanks to its early entry.
In summary, while Syndax Pharmaceuticals shows promising early sales for Revuforj and continues to progress with regulatory filings, B.Riley has recalibrated its price target to reflect a more competitive market outlook. The firm’s Buy rating remains in place, signaling confidence in the company’s market potential despite the lowered price target. With a market capitalization of $1.34 billion and an 18.31% year-to-date return, SNDX presents an interesting case for investors. For a deeper understanding of Syndax’s financial health and growth prospects, including additional ProTips and comprehensive analysis, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Syndax Pharmaceuticals reported its fourth-quarter 2024 financial results, revealing a significant shortfall in both earnings and revenue. The company posted an earnings per share (EPS) of -1.1, missing the forecast of -0.9857, and generated $7.68 million in revenue, which was well below the expected $25.2 million. Despite these financial misses, the company made notable progress with the launch of two first-in-class medicines, which may have contributed to a positive stock movement. Syndax also plans to file a supplemental New Drug Application for Revuforged in the second quarter of 2025, aiming for label expansion. Operating expenses were high at $104 million, with research and development costs accounting for $65.5 million. The company maintains a strong financial position with $692.4 million in cash and investments, expected to fund operations through profitability. Analysts from various firms have not made any recent upgrades or downgrades, but the company’s strategic initiatives, including international expansion and multiple clinical trials, suggest a focus on future growth opportunities.
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