Stifel maintains Syndax stock rating after trial failure

Stifel has retained its Buy rating and set a $40.00 price target for Syndax Pharmaceuticals (NASDAQ:SNDX) shares, following the company’s disclosure of a failed clinical trial. The Phase 2 MAXPIRe trial investigating axatilimab in idiopathic pulmonary fibrosis patients did not achieve its primary goal of delaying annualized forced vital capacity decline when compared to placebo after 26 weeks.

Syndax has decided to discontinue future axatilimab development efforts in this area. The firm’s assessment aligns with the industry’s pattern of attrition in therapies targeting the monocyte/macrophage axis in idiopathic pulmonary fibrosis. Analysts point out that the outcome is disappointing and highlights the challenges of drug development in this disease.

Stifel’s core predictions for Revuforj revenue growth and potential Niktimvo label expansion in first-line chronic graft-versus-host disease remain unchanged. Despite a 15% decline in shares post-close, Stifel views the stock as intrinsically undervalued, with favorable risk/reward ratios. The current price of $13.59 is close to the stock’s 52-week low of $12.99.

InvestingPro analysis indicates that SNDX is underpriced based on its Fair Value assessment, supporting Stifel’s viewpoint. The platform provides over 1,400 US stock analyses, including a detailed Pro Research Report for SNDX. Investors can gain further insights through InvestingPro’s additional tips and metrics. Recently, Syndax reported weaker-than-expected second-quarter financial results, falling short of revenue and earnings estimates.

BofA Securities lowered its price target to $26, while maintaining a Buy rating due to Revuforj sales being $5 million below expectations. UBS adjusted its target to $33, citing a reduction in new patient starts for Revuforj, although maintenance patients increased. H.C. Wainwright also kept a Buy rating with a $38 price target, highlighting the potential of Niktimvo in upcoming clinical results, particularly in the NPM1m AML market.

Jefferies also maintained a Buy rating with a $35 price target, anticipating Phase 2 data for axatilimab in idiopathic pulmonary fibrosis in the fourth quarter.