H.C. Wainwright maintains Buy on Syndax stock, $51 target

On Tuesday, H.C. Wainwright affirmed its Buy rating on shares of Syndax Pharmaceuticals (NASDAQ:SNDX), maintaining a $51.00 price target. The firm’s analysis followed the company’s fourth-quarter earnings report, which revealed an EPS of ($1.10). This figure was in line with H.C. Wainwright’s estimate of ($1.10) but fell short of the consensus estimate of ($0.84). According to InvestingPro data, SNDX has shown strong momentum with a 17.1% year-to-date return, despite trading near its Fair Value. InvestingPro analysis reveals two key strengths: the company holds more cash than debt and maintains strong liquidity ratios.

Syndax’s R&D expenses for the fourth quarter of 2024 amounted to $65.5 million, up from $55.1 million in the same period the previous year. The company’s SG&A expenses also saw a significant increase, reaching $37.7 million compared to $22.8 million in the fourth quarter of 2023. For the full year of 2024, the R&D expenses were reported at $241.6 million, which was slightly below the company’s guidance of $245 million to $250 million. The total operating expenses for the year were within the projected range of $365 million to $370 million, including an estimated $41 million in non-cash stock compensation.

Looking ahead, Syndax provided guidance for the first quarter of 2025, with R&D expenses expected to be between $65 million and $70 million. The combined guidance for R&D and SG&A expenses for the quarter is projected to be between $105 million and $110 million. For the full year of 2025, the company anticipates R&D expenses to range from $260 million to $280 million, with total R&D and SG&A expenses forecasted to be between $415 million and $435 million, including around $45 million in non-cash stock compensation expense.

In light of these projections, H.C. Wainwright has adjusted its EPS estimate for the full year of 2025 to ($3.86) from the previous ($3.76). As of December 31, 2024, Syndax reported having cash and cash equivalents of $692.4 million. The company expressed confidence that its cash reserves would be sufficient to fund operations until it reaches profitability. H.C. Wainwright reiterated its Buy rating and $51 price target, signaling continued optimism in the company’s stock.

In other recent news, Syndax Pharmaceuticals has reported significant developments in its financial and strategic operations. The company announced fourth-quarter 2024 revenue of $7.7 million, surpassing analyst expectations, notably from the sales of its product, Revuforj. Despite missing earnings forecasts with an EPS of -1.1 compared to the expected -0.9857, the revenue figures exceeded consensus estimates, reflecting strong early market traction. Analyst firms such as BTIG and Goldman Sachs have maintained a Buy rating on Syndax, though Goldman Sachs adjusted its price target from $33 to $31. B.Riley also lowered its price target to $29 from $36 but maintained a Buy rating, citing increased competition as a factor in the adjustment.

The company’s proactive engagement with payors has resulted in positive coverage for Revuforj, with 56% of commercial lives and 53% of managed care lives covered. Syndax is also advancing its pipeline with plans to submit a supplemental New Drug Application for revumenib in 2025, targeting relapsed/refractory acute leukemia. Furthermore, Syndax’s cash reserves stand at $692 million, aligning with its goal to achieve profitability. Despite the earnings miss, analysts like those from BTIG express confidence in Syndax’s strategic direction, highlighting the company’s strong market position and potential for growth.

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