Roth Capital Partners launched coverage of Syros Pharmaceuticals (NASDAQ:SYRS) with a “neutral” rating and price target of $16. The stock closed at $16.51 on Oct.23.
“Syros is maturing into a solid company, but value-driving proof-of-concept may take a little longer,” writes analyst Jotin Marango, adding that the company has come a long way since its IPO in July 2016, although its share price has remained on average range-bound since then.
Its lead clinical program and current value driver, the retinoid SY-1425, is in a multi-cohort Phase 2 study in patients with biomarker-defined AML and MDS, with preliminary data expected at ASH this December.
“Although we appreciate the potential of SY-1425 in AML, we believe that the initial readout from the Phase 2 study expected at ASH may not be sufficiently deep to support the current excitement around this stock and current valuation ($440-million market cap),” Mr. Marango said.
“For this reason, ahead of SY-1425 data at ASH and pending more clarity on the next steps in the AML/MDS program, we elect to start on the sideline,” he added.
