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TD Cowen maintains Buy on Syros Pharmaceuticals stock amid trial optimism

EditorAhmed Abdulazez Abdulkadir
Published 06/26/2024, 11:10 AM
SYRS
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On Wednesday, TD Cowen reiterated its Buy rating on Syros Pharmaceuticals (NASDAQ:SYRS), emphasizing the potential growth opportunities for the company's treatment for higher-risk myelodysplastic syndromes (HR-MDS). During a recent webcast, Syros Pharmaceuticals' Chief Medical Officer David Roth and CEO Conley Chee, along with three hematology and oncology key opinion leaders (KOLs), discussed the HR-MDS treatment landscape.

The KOLs highlighted that the market could accommodate several competitors and that strong durable complete response (CR) data would likely lead to broad adoption of new treatments.

Syros Pharmaceuticals is currently trading at a low enterprise value (EV), which TD Cowen suggests could lead to significant gains if upcoming trial results for acute myeloid leukemia (AML) in the third quarter and for MDS in mid-fourth quarter prove positive. The analyst firm's continued support for Syros Pharmaceuticals is based on these anticipated trial outcomes.

The webcast provided an opportunity for the medical community to gain insight into the company's progress and the evolving HR-MDS treatment landscape. According to the KOLs, the presence of durable CR data is a critical factor in the widespread acceptance and use of new HR-MDS treatments.

Syros Pharmaceuticals is actively working on developing treatments for HR-MDS and AML, with trial results expected later this year. Positive outcomes from these trials could potentially enhance the company's market position and stock value.

In other recent news, Syros Pharmaceuticals has been making significant progress in its clinical trials, focusing on the development of tamibarotene, a potential treatment for hematologic malignancies. The company has completed the enrollment of 190 patients for a pivotal Phase III SELECT-MDS study. The primary goal of this study is to evaluate the complete response rate, with results expected in late 2024. This drug has received FDA Fast Track designation for high-risk myelodysplastic syndrome (HR-MDS), highlighting its potential in this area.

Several analyst firms, including Piper Sandler, H.C. Wainwright, Brookline Capital Markets, and JMP Securities, have maintained positive outlooks on Syros Pharmaceuticals. Piper Sandler confirmed an Overweight rating with a price target of $13, while H.C. Wainwright reaffirmed a Buy rating with a $15 price target. Brookline Capital Markets maintained a Buy rating with a $37 price target, and JMP Securities reiterated a Market Outperform rating with a $12 price target.

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 stability is attributed to an extended interest-only period on a loan and the potential for increased funding.

InvestingPro Insights

In light of TD Cowen's optimistic stance on Syros Pharmaceuticals (NASDAQ:SYRS), real-time data from InvestingPro provides additional context to the company's financial health and market performance. With a market capitalization of $153.69 million, Syros is a relatively small player with the agility to potentially capitalize on market opportunities. Despite not being profitable in the last twelve months, the company holds a significant cash reserve, outweighing its debt, which is an essential indicator of financial stability. This is a key consideration for investors, especially when evaluating the company's capability to sustain its operations and continue funding its clinical trials.

InvestingPro Tips also reveal that Syros has experienced a noteworthy return of 97.95% over the last year, indicating strong investor confidence which may continue if the company's upcoming trial results for HR-MDS and AML are favorable. However, it's important to note that the company's stock price has been quite volatile, and analysts do not expect profitability this year. For those considering an investment in Syros, these factors underscore the importance of staying informed on the latest company developments and market trends.

For a deeper dive into Syros Pharmaceuticals and access to exclusive market analysis, visit InvestingPro. Currently, there are 11 additional InvestingPro Tips available, which can provide further guidance to investors. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing your investment research toolkit.

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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