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On Friday, Citi initiated coverage on Cytokinetics (NASDAQ:CYTK) with a Buy rating and an $86.00 price target, representing significant upside from the current price of $46.17. The firm’s analysts highlighted the potential of aficamten, Cytokinetics’ treatment for obstructive hypertrophic cardiomyopathy (oHCM), which is anticipated to receive FDA approval in the third quarter of 2025. They predict that aficamten could achieve over $3.6 billion in peak sales, surpassing initial expectations. According to InvestingPro data, analyst targets for CYTK range from $60 to $120, with a strong consensus recommendation of 1.75 (Buy).
The analysts at Citi believe that aficamten could become the preferred treatment option due to its superior label and less burdensome prescribing requirements compared to its competitor, Bristol’s Camzyos, which has not met initial sales projections. They noted that Cytokinetics’ stock has faced downward pressure since mid-2024 following the company’s announcement of a new Phase 3 trial for another drug, omecamtiv, which had previously encountered resistance from the FDA. The stock is currently trading near its 52-week low of $44.49, having declined 40% over the past year. Additionally, management indicated that mergers and acquisitions are not currently a focus, as they plan to expand their specialty cardiology franchise independently. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 9.28, though it currently operates at a loss with negative EBITDA of $511 million.
Citi’s analysts argue that the market’s reaction to these developments has been excessive. They underscored the expected FDA approval and market launch of aficamten, along with several key data catalysts anticipated in 2025, as reasons for their positive outlook on the stock. The firm has given Cytokinetics a Buy/High Risk (1H) rating with a price target of $86, suggesting confidence in the stock’s future performance despite the risks involved. For deeper insights into CYTK’s valuation and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes detailed analysis of the company’s financial health, market position, and growth prospects.
In other recent news, Cytokinetics has been the subject of several analyst reports. JMP Securities maintained its Market Outperform rating on the company with a $78 price target, emphasizing the potential of Cytokinetics’ cardiac myosin inhibitor, aficamten. In contrast, Stifel initiated coverage with a Buy rating and an $80 price target, highlighting aficamten’s potential in obstructive hypertrophic cardiomyopathy. H.C. Wainwright also reaffirmed its Buy rating, setting a price target of $120, and noted the company’s anticipation of significant clinical, regulatory, and commercial milestones.
In addition to this, Cytokinetics announced the award of $100,000 in grants to five patient advocacy organizations focused on hypertrophic cardiomyopathy and heart failure. The funding, distributed through the company’s annual Communications Grant Program, aims to bolster community outreach and awareness efforts. Each organization will receive $20,000 to enhance their communication strategies and engage more effectively with their respective communities.
These are among the recent developments for Cytokinetics, which continues to focus on its drug pipeline, particularly aficamten. Piper Sandler has also identified Cytokinetics as one of the companies with de-risked Phase 3 readouts or interim analyses expected in 2025. The firm did not provide specific expectations or success criteria for these trials.
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