Morgan Stanley raises Cytokinetics stock to Overweight, $67 target

Published 07/03/2025, 16:34
Morgan Stanley raises Cytokinetics stock to Overweight, $67 target

On Friday, Morgan Stanley (NYSE:MS) analysts, led by Maxwell Skor, upgraded their rating on Cytokinetics (NASDAQ:CYTK) to Overweight from an unspecified previous rating, setting a price target of $67.00. The target represents a significant upside from the current trading price of $43.59. According to InvestingPro data, analyst price targets for CYTK range from $60 to $120, with the stock currently trading above its calculated Fair Value. The firm anticipates significant developments for the biopharmaceutical company, including the expected release of MAPLE-HCM study data in the second quarter of 2025 and the potential approval of aficamten, a treatment for obstructive hypertrophic cardiomyopathy (HCM). With a market capitalization of $5.14 billion and strong liquidity position (current ratio of 6.17), the company appears well-positioned to execute its development plans. InvestingPro subscribers can access 8 additional key insights about CYTK’s financial health and growth prospects.

Cytokinetics is preparing for the anticipated launch of aficamten, with a Prescription Drug User Fee Act (PDUFA) date set for September 26, 2025. Morgan Stanley’s analysis suggests that aficamten is likely to receive approval within the year for obstructive HCM. The analysts also pointed to the potential impact of the MAPLE-HCM study, which could position aficamten as a first-line therapy and differentiate it from Bristol Myers Squibb’s (NYSE:BMY) Camzyos, which is awaiting its own PDUFA in April and is covered by analyst Terence Flynn.

The upcoming MAPLE-HCM study will compare aficamten to metoprolol for the treatment of symptomatic obstructive HCM. Morgan Stanley sees this as an opportunity for Cytokinetics to further stand out in the market. The company has also submitted its 120-day safety update to the FDA and is expecting a mid-cycle meeting with the agency in March.

In addition to these developments, Cytokinetics has provided its financial guidance for 2025, projecting GAAP operating expenses to be in the range of $670 million to $710 million and non-cash stock-based compensation expenses estimated between $110 million and $120 million. This guidance indicates the company’s financial planning as it approaches key milestones in its product pipeline. While the company operates with moderate debt levels, InvestingPro analysis shows its liquid assets exceed short-term obligations, providing financial flexibility for its development programs. Discover comprehensive financial analysis and more insights in CYTK’s Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Cytokinetics reported its fourth-quarter 2024 financial results, revealing a slight miss in earnings per share (EPS) compared to analyst expectations. The company posted an EPS of -$1.26, falling short of the forecasted -$1.22. However, revenue for the quarter reached $16.9 million, a significant increase from $1.7 million in the same period last year. This growth in revenue indicates strong top-line performance, despite the EPS shortfall. Additionally, Cytokinetics maintains a robust cash position with $1.2 billion in cash and investments, which supports its ongoing projects and future developments.

The company is preparing for a potential U.S. commercial launch of its product Afacamten in September 2025, pending FDA approval. Alongside this, Cytokinetics is expanding its commercial infrastructure in Europe and preparing for market entry in China through a partnership with Sanofi (NASDAQ:SNY). Analyst firms have not provided any new upgrades or downgrades for Cytokinetics recently. The company is also engaged in strategic partnerships, including a collaboration with Bayer (OTC:BAYRY) for the development and commercialization of Afikamten in Japan, which brought in an upfront payment of €50 million. These recent developments highlight Cytokinetics’ strategic advancements and ongoing efforts to expand its market presence globally.

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