An overly negative reception to clinical results could mean investors are missing out on potential upside for Syndax Pharmaceuticals , according to Goldman Sachs. The investment bank initiated coverage of the biopharmaceutical company on Wednesday with a buy rating, setting a 12-month price target of $30. This implies potential upside of 137% from the stock’s Tuesday closing price of $12.65. Shares of Syndax have plummeted more than 48% so far this year. The stock has declined about 10% in October, coinciding with Syndax announcing an early stop for efficacy of its trial of revumenib, a treatment for acute myeloid leukemia. In its Oct. 2 announcement, Syndax said it had “positive topline data” from the protocol-defined pooled analysis of this trial. SNDX YTD mountain Syndax YTD chart “We view the extent of the market’s negative response as reflected in SNDX shares around reporting of the topline AUGMENT-101 data as an overreaction,” wrote analyst Chris Shibutani. Instead, he said Syndax’s current valuation offered an “especially attractive entry point for investors” as two of the firm’s treatments enter the regulatory process ahead of commercialization. “Based on our analysis and view, we believe the stock is currently trading below the value of near-term commercial opportunities ex-cash/-terminal value,” he wrote. “At current price levels and following supportive topline data readouts from registration-stage programs revumenib and axatilimab, we see a unique opportunity for a smid biotech that has the potential to launch two commercial assets in 2024E,” the analyst added. Shibutani noted that Syndax has also made efforts researching how to expand the applicable clinical and commercial use cases for revumenib and axatilimab, which target chronic graft-versus-host disease. Syndax, which licenses drugs from other biopharmaceutical companies, has also been actively trying to grow its product line of oncology assets, the analyst noted. “While the primary focus is on the upcoming potential launches of revumenib and axatilimab, the company continues to explore expansion opportunities for their oncology focused pipeline overall, with an eye to adding potentially attractive targets through business development efforts that are primarily in the late preclinical to Phase 1 stage of development,” he wrote. — CNBC’s Michael Bloom contributed to this report.