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JPMorgan stays bullish on Syndax stock, maintains price target

EditorAhmed Abdulazez Abdulkadir
Published 05/21/2024, 08:20 AM
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On Tuesday, JPMorgan reiterated its Overweight rating on Syndax Pharmaceuticals (NASDAQ:SNDX), maintaining a price target of $34.00. The firm highlighted the biopharmaceutical company as a key growth idea on its US Equity Analyst Focus List. The decision comes as Syndax is poised for potential growth based on upcoming drug approvals and promising clinical trial outcomes.

The financial institution's optimism stems from Syndax's pipeline, which includes axatilimab for the treatment of refractory chronic graft-versus-host disease (GVHD) and revumenib for relapsed/refractory (r/r) KMT2A-rearranged acute leukemia. JPMorgan anticipates that the company's stock could see an upward movement toward the low-$30s per share range if these treatments gain approval.

Syndax's clinical development has been closely monitored by analysts, with particular attention on the pivotal study of revumenib in r/r NPM1-mutated acute myeloid leukemia (AML). JPMorgan has expressed a belief in a high probability of success for this study, which could be a significant catalyst for the company's stock performance.

The current price target of $34.00 remains unchanged from the previous target set by JPMorgan. This target is based on the firm's evaluation of Syndax's valuation levels and the anticipated positive outcomes from the company's multiple drug approvals and clinical trials.

InvestingPro Insights

As Syndax Pharmaceuticals (NASDAQ:SNDX) garners attention with JPMorgan's Overweight rating and a price target of $34.00, the InvestingPro platform offers additional insights that could be pivotal for investors. Syndax's financial health is underscored by the fact that it holds more cash than debt on its balance sheet, providing a level of security for its operations and development strategies. Moreover, the consensus among analysts is optimistic, with 8 analysts having revised their earnings estimates upwards for the upcoming period, signaling potential confidence in the company's growth prospects.

In terms of real-time financial metrics, Syndax has a market capitalization of $1.72 billion, reflecting its size and market value within the biopharmaceutical industry. Despite a challenging profitability outlook, with the company not expected to be profitable this year and a negative P/E ratio of -6.28, Syndax has shown resilience with a significant price uptick of 32.09% over the last six months. This suggests that investors may be pricing in future growth potential, perhaps in anticipation of successful drug approvals.

Investors looking to delve deeper into Syndax's financials and future outlook can find additional InvestingPro Tips on the platform. With a total of 10 tips available, including an analysis of the company's liquid assets and gross profit margins, InvestingPro provides a comprehensive view that can help investors make more informed decisions. For those interested, using the coupon code PRONEWS24 will give an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering even greater access to valuable investment insights.

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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