A promising treatment for acute leukemia makes Syndax Pharmaceuticals an attractive stock, JPMorgan said. Analyst Anupam Rama initiated coverage of Syndax with an overweight rating ahead of what could be significant new data on the company’s cancer therapy called revumenib. “Our Overweight rating on SNDX shares is predominantly driven by revumenib (oral menin-KMT2A inhibitor) in acute leukemias, which we view as being de-risked and having best-in-class potential, based on known data to date,” Rama wrote in a Tuesday note. Shares of Syndax outperformed last year, rising more than 16%. The analyst’s price target of $41 means the biotech stock could see another 61% increase from Friday’s closing price. The stock rose more than 2% on Tuesday. The analyst is anticipating key data on revumenib from the ongoing AUGMENT-101 study into relapsed leukemia populations to start coming out in the third quarter of 2023, which could drive upside for the stock, according to the note. “Our peak sales estimate for revumenib of ~ $1.3BWW (in the refractory setting alone) is at the mid-point / slight higher end of the Street peak sales range and probability of success (POS) at the higher end of the Street range,” read the note. Additionally, the analyst is anticipating further data on another treatment for chronic graft-versus-host disease (cGVHD) called axatilimab in mid-2023. Syndax partnered with Incyte on the treatment. “We view SNDX shares as undervalued on the revumenib alone and would note that axatilimab (antiCSG-1R) in r/r GVHD has the potential to emerging both as an underappreciated value driver near- and long-term (our estimates also at the mid-point / higher-end of peak sales and higher end of POS relative to Street range, given similar aforementioned rationale to revumenib),” Rama wrote. —CNBC’s Michael Bloom contributed to this report.