Analysts Are Upgrading Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX) After Its Latest Results

Shareholders in Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX) had a terrible week, as shares crashed 29% to US$9.99 in the week since its latest quarterly results. Revenues of US$20m beat estimates by a substantial 24% margin. Syndax Pharmaceuticals also reported a statutory loss of US$0.98 per share, which was roughly in line with what the analysts predicted. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've discovered 2 warning signs about Syndax Pharmaceuticals. View them for free.

Following the latest results, Syndax Pharmaceuticals' eleven analysts are now forecasting revenues of US$123.5m in 2025. This would be a major 183% improvement in revenue compared to the last 12 months. Losses are forecast to narrow 2.1% to US$3.77 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$84.8m and losses of US$3.93 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

See our latest analysis for Syndax Pharmaceuticals

Despite these upgrades,the analysts have not made any major changes to their price target of US$35.42, implying that their latest estimates don't have a long term impact on what they think the stock is worth. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Syndax Pharmaceuticals analyst has a price target of US$51.00 per share, while the most pessimistic values it at US$17.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Syndax Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 299% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 2.6% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 17% annually. So it looks like Syndax Pharmaceuticals is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$35.42, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Syndax Pharmaceuticals going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for Syndax Pharmaceuticals you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.