David Lebowitz, an analyst from Citi, has initiated a new Buy rating on Cytokinetics (CYTK).
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David Lebowitz’s rating is based on several compelling factors surrounding Cytokinetics. One key reason is the potential of aficamten, which is anticipated to receive FDA approval for treating obstructive hypertrophic cardiomyopathy (oHCM) by the third quarter of 2025. Aficamten is projected to achieve over $3.6 billion in peak sales due to its superior label and less burdensome prescribing requirements compared to competitors, thus positioning it as the preferred treatment option.
Additionally, the market’s current valuation of CYTK shares appears undervalued, especially considering the positive data expected from ongoing trials and the significant catalysts anticipated in 2025. Although Cytokinetics faces challenges, such as the FDA’s critical response to omecamtiv and the company’s decision to independently expand its cardiology franchise without pursuing mergers or acquisitions, the adverse impact on share prices seems excessive. The promising trajectory of aficamten and its potential market impact form the backbone of Lebowitz’s optimistic Buy rating.
In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $78.00 price target.
Based on the recent corporate insider activity of 139 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.