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On Wednesday, Raymond (NSE:RYMD) James reaffirmed a positive stance on Cytokinetics (NASDAQ:CYTK), maintaining an Outperform rating and a price target of $81.00. Currently trading at $41.37, the stock appears overvalued according to InvestingPro analysis. Notably, analyst targets range from $47 to $120, with a strong consensus recommendation of 1.67 (where 1 is Strong Buy). The endorsement follows recent developments from Edgewise Therapeutics concerning its CIRRUS-HCM Phase 2 study, which could impact the competitive landscape for treatments in hypertrophic cardiomyopathy (HCM).
Edgewise, which is not covered by Raymond James, reported first repeat dosing results for its drug EDG-7500 in HCM patients. The study aimed to assess the drug’s ability to reduce gradient levels in patients with elevated resting and Valsalva left ventricular outflow tract gradients (LVOT-G) and to establish safety compared to cardiac myosin inhibitors (CMIs).
The results presented were mixed, showing some promising signs of drug activity in both obstructive HCM (oHCM) and non-obstructive HCM (nHCM) patients. However, clarity was lacking regarding the drug’s dosing strategy and safety profile, leaving questions about its potential to compete with existing CMIs.
The data from the study was divided into two parts. Part B focused on oHCM patients, with 17 individuals in the safety population and 12 in the efficacy population, receiving doses of 50 and 100 mg once daily. Part C examined nHCM patients, where 12 were part of the safety population and 8 completed four weeks of therapy at either 50 or 100 mg once daily. Despite recent market challenges, with the stock down 14% in the past week and trading near its 52-week low of $37.46, Cytokinetics maintains a strong liquidity position with a current ratio of 6.17.
The analyst from Raymond James views the study’s results as generally positive for Cytokinetics, suggesting that the uncertainties surrounding EDG-7500’s dosing and safety may benefit Cytokinetics as it competes within the CMI drug class. The findings imply that there is still work to be done for Edgewise Therapeutics to convince investors of EDG-7500’s potential to capture market share from established CMIs. For deeper insights into Cytokinetics’ competitive position and financial outlook, InvestingPro subscribers can access comprehensive analysis, including 11 additional ProTips and a detailed Pro Research Report, part of our coverage of over 1,400 US stocks.
In other recent news, Cytokinetics has shared significant updates regarding its drug aficamten, a treatment for hypertrophic cardiomyopathy (HCM). The company recently completed a midcycle review with the FDA for its New Drug Application, with no advisory committee meeting planned, signaling potential progress toward approval. In addition, Cytokinetics unveiled EARTH-HCM, an interactive tool developed to enhance the understanding of HCM, leveraging data from numerous healthcare facilities. Analysts have shown support for Cytokinetics, with H.C. Wainwright maintaining a Buy rating and a $120 price target, while Citi reiterated a Buy rating with an $86 target. Morgan Stanley (NYSE:MS) upgraded its rating to Overweight, setting a $67 price target, and noted the expected release of MAPLE-HCM study data in 2025. These developments come alongside new analyses that highlight aficamten’s potential benefits, particularly its long-term impact on cardiac structure. The company is also preparing for a potential launch of aficamten, with a Prescription Drug User Fee Act date set for September 2025. Cytokinetics’ financial guidance for 2025 includes projected operating expenses between $670 million and $710 million, indicating strategic planning as it moves toward key milestones.
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