Bank of America Securities analyst Jason Zemansky reiterated a Hold rating on Cytokinetics (CYTK – Research Report) yesterday and set a price target of $62.00.
Jason Zemansky has given his Hold rating due to a combination of factors impacting Cytokinetics’ outlook. The company’s recent quarterly results showed a mixed performance, with revenue exceeding expectations but earnings per share falling short due to increased investments in commercial readiness. Despite management’s confidence in the clinical profile and commercial strategy of aficamten, there are concerns about the complexities of execution and logistical challenges, particularly in administering cardiac myosin inhibitors.
Furthermore, while Cytokinetics believes that the Risk Evaluation and Mitigation Strategies (REMS) for aficamten could differentiate it from competitors, the practical implications for prescribers may be limited. The potential advantages could be narrowed by similar considerations for competing products. Additionally, the upcoming phase 3 trial results for aficamten in first-line treatment of obstructive hypertrophic cardiomyopathy are expected to have a modest impact, with skepticism about the early adoption of cardiac myosin inhibitors. Given these uncertainties and the company’s current valuation, Zemansky maintains a Neutral rating with a price objective of $62.
Based on the recent corporate insider activity of 137 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CYTK in relation to earlier this year.