On Wednesday, H.C. Wainwright reaffirmed a Buy rating on Syros Pharmaceuticals (NASDAQ:SYRS), maintaining a $15.00 price target for the company's stock. The endorsement follows a key opinion leader (KOL) event hosted by Syros on Tuesday, which highlighted the potential treatment benefits for patients with newly diagnosed higher-risk myelodysplastic syndromes (MDS).
During the event, medical experts emphasized the significance of complete response (CR) as a valuable endpoint for assessing treatment efficacy, particularly in higher-risk MDS cases. They noted that achieving a durable and statistically significant CR is correlated with better long-term outcomes for MDS patients, which could also imply an overall survival advantage.
One expert clarified that while CR is a critical measure, marrow CR should not be considered equally important in MDS, especially as most patients do not undergo transplantation. It was pointed out that marrow CR, without hematologic improvement, does not correlate with better patient outcomes.
The analyst from H.C. Wainwright reiterated the firm's position, citing the $15.00 price target as a sum of $12.46 attributed to the value of tamibarotene, a drug developed by Syros, and an additional $2.76 in cash per share. The reiteration of the Buy rating signals confidence in the company's prospects and the potential of its therapeutic offerings.
In other recent news, Syros Pharmaceuticals has made significant strides in the development of tamibarotene, a potential treatment for hematologic malignancies. The company completed the enrollment of 190 patients for the SELECT-MDS-1 study, with pivotal complete response data anticipated in late 2024. The drug has received FDA Fast Track designation for high-risk myelodysplastic syndrome (HR-MDS), highlighting its potential and the unmet need for treatment in this patient population.
Brookline Capital Markets and JMP Securities have both maintained a positive outlook on Syros Pharmaceuticals. Brookline upholds a Buy rating and a $37.00 price target, while JMP Securities reiterated a Market Outperform rating with a steady price target of $12.00. Both firms express confidence in the potential of tamibarotene in treating different forms of myelodysplastic syndrome (MDS) and acute myeloid leukemia (AML).
Despite a decrease in revenue due to the termination of a partnership with Pfizer (NYSE:PFE) and a net loss for the first quarter of 2024, Syros' financial position is expected to remain stable until the third quarter of 2025. This is due to an extended interest-only period on a loan and the potential for increased funding. The company also reported a decrease in research and development and general and administrative expenses, indicating effective cost management.
InvestingPro Insights
In light of H.C. Wainwright's reaffirmation of a Buy rating for Syros Pharmaceuticals, current data from InvestingPro provides additional context for investors. The company holds a market capitalization of $155.02 million and is trading at a high Price / Book multiple of 10.3 as of the last twelve months ending Q1 2024. Despite significant volatility and a negative revenue growth rate of -43.54% during the same period, Syros has demonstrated a strong return on investment with a 97.95% return over the last year. Notably, the stock has experienced substantial price movements in the short term, with a 16.7% return over the last month.
InvestingPro Tips suggest that while Syros has more cash than debt on its balance, it is rapidly depleting its cash reserves and has weak gross profit margins. Additionally, analysts do not expect the company to be profitable this year. However, it's worth noting that the company's liquid assets surpass its short-term obligations, which may provide some financial flexibility in the near term. For a deeper dive into Syros Pharmaceuticals and additional InvestingPro Tips, investors can explore https://www.investing.com/pro/SYRS. There are 12 more tips available on InvestingPro, and interested readers can get an extra 10% off on a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.