Raymond James downgrades Cytokinetics stock rating to Market Perform

Investing.com - Raymond (NSE:RYMD) James downgraded Cytokinetics (NASDAQ:CYTK) from Outperform to Market Perform on Tuesday. The biopharmaceutical company, currently valued at $4.29 billion, has seen its shares decline 22% year-to-date.

The downgrade reflects the research firm’s view on the near-term outlook for the company despite seeing long-term potential in its product pipeline. According to InvestingPro data, analysts anticipate a sales decline this year, with the company currently operating at negative profit margins.

Raymond James specifically cited expectations for a gradual launch of aficamten, Cytokinetics’ treatment for obstructive hypertrophic cardiomyopathy (oHCM).

The firm maintained that aficamten presents "an attractive long-term value proposition" in the oHCM market.

Raymond James expects Cytokinetics shares to remain "range-bound in the near-/intermediate-term" as the market awaits more substantial commercial traction for the treatment.

In other recent news, Cytokinetics announced that its Phase 3 clinical trial, MAPLE-HCM, successfully met its primary endpoint. The trial demonstrated that aficamten, the company’s treatment for obstructive hypertrophic cardiomyopathy (HCM), significantly improved peak oxygen uptake compared to the standard beta blocker, metoprolol. This success suggests aficamten could be a superior option for enhancing exercise capacity in patients with this heart condition. Following this development, Stifel analysts maintained their Buy rating and $87 price target for Cytokinetics, expressing confidence in the drug’s potential after the trial’s success. Meanwhile, Mizuho (NYSE:MFG) Securities adjusted its price target for Cytokinetics to $84, citing a delay in the Prescription Drug User Fee Act (PDUFA) date for aficamten and modifying its sales expectations accordingly. JPMorgan also revised its price target for the company to $53, reflecting updated revenue forecasts and a more gradual launch trajectory for aficamten. Despite these adjustments, both firms continue to support the stock with positive ratings. These developments underscore the evolving landscape for Cytokinetics as it progresses with aficamten.

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