Jefferies maintains Buy rating on Syndax stock with $43 target

On Monday, Jefferies analyst Kelly Shi reaffirmed a Buy rating on Syndax Pharmaceuticals (NASDAQ: NASDAQ:SNDX), with a steady price target of $43.00. According to InvestingPro data, analyst targets range from $18 to $51, with a strong consensus recommendation of 1.4 (Strong Buy). The stock has shown resilience with a 14.78% gain over the past week, despite trading near $13.92. Shi's outlook for the company in 2025 centers on several key developments.

Firstly, the launch performance of Revuforj is a focal point, with estimated sales reaching $67 million for the year. Additionally, the expected inclusion of NPM1 in the NCCN guidelines and a supplemental New Drug Application (sNDA) filing in the first half of 2025 are highlighted as significant events. InvestingPro analysis reveals the company maintains a strong financial position with more cash than debt and a healthy current ratio of 6.99x.

The analyst also anticipates data from Revuforj’s first-line (1L) 7+3 treatment regimen to be released in 2025. It is noted that comparisons should not be drawn between Syndax's venetoclax/azacitidine (ven/aza) combination and competitors' first-line data due to differing regimens. Updates from competitors are also mentioned as a point of interest.

In other recent news, Syndax Pharmaceuticals has eliminated the role of Chief Medical (TASE:PMCN) Officer, according to a recent SEC filing. This development follows the significant approval of Syndax's drug Revuforj for the treatment of R/R KMT2Am acute leukemias, as highlighted by TD Cowen, who reiterated a Buy rating on the company's stock. H.C. Wainwright also maintained a Buy rating and increased the price target to $51.00, following the FDA approval of Revuforj.

However, Scotiabank (TSX:BNS) reduced its price target to $18, maintaining a Sector Perform rating, due to potential FDA approval risks for Syndax's drug, revumenib. In financial developments, Syndax announced a $350 million royalty agreement with Royalty Pharma for Niktimvo during its Q3 2024 earnings call, reporting $399.6 million in cash as of September 30, with Q3 operating expenses at $102.1 million.

Syndax Pharmaceuticals has also reported positive results from its AUGMENT-101 trial for revumenib, a treatment for acute myeloid leukemia (AML). The trial met its primary endpoint with a 23% complete response rate among evaluable adults.

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