Guggenheim initiates Syndax Pharmaceuticals stock with Buy rating on AML drug success

Published 04/09/2025, 11:32
Guggenheim initiates Syndax Pharmaceuticals stock with Buy rating on AML drug success

Investing.com - Guggenheim initiated coverage of Syndax Pharmaceuticals (NASDAQ:SNDX) with a Buy rating and a $34.00 price target on Thursday. The stock, currently trading at $16.13, has shown strong momentum with a 22% gain year-to-date, while analyst targets range from $19 to $56.

The research firm cited the strong commercial launch of Revuforj, Syndax’s menin inhibitor for acute myeloid leukemia (AML), as a key factor in its positive outlook despite previous industry skepticism about the drug class due to QTc and drug-drug interaction concerns.

Guggenheim noted that Revuforj has demonstrated the "best risk/reward AML commercial launch to date" despite targeting the smallest labeled patient subgroup, with no indication from management that growth is slowing.

The firm also highlighted Syndax’s second product, Niktimvo, which it values at a minimum of $8 per share, not including potential upside from new disease catalysts expected to begin in the second half of 2026.

With $6 per share in cash and the company’s guidance to potentially reach profitability by 2027, Guggenheim believes Syndax is well-positioned for future growth, particularly with an imminent label expansion for Revuforj that should provide "a good commercial story investment throughout 2026."

In other recent news, Syndax Pharmaceuticals reported strong second-quarter 2025 earnings, surpassing both earnings per share and revenue forecasts. The company posted an EPS of -$0.83, beating the expected -$1.01, and achieved revenue of $37.96 million, exceeding the anticipated $27.13 million. This represents a revenue surprise of nearly 40%. Syndax’s Revuforj product generated $28.6 million in revenue, a 43% increase from the previous quarter, and Niktimvo, in its first full quarter, delivered $36.2 million, marking a 166% quarter-over-quarter rise.

In light of these results, BTIG raised its price target for Syndax to $56, maintaining a Buy rating. Similarly, Goldman Sachs increased its price target to $20, also maintaining a Buy rating, citing the strong performance of Revuforj as an important step toward achieving significant sales in acute leukemia indications. These developments highlight the company’s robust commercial growth and positive analyst sentiment.

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

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