Cytokinetics initiated with a Buy at Stifel

Stifel initiated coverage of Cytokinetics (CYTK) with a Buy rating and $80 price target Cytokinetics “is an out-of-favor stock” following the “controversial” Royalty Pharma deal, the analyst tells investors in a research note. However, Stifel believes the stock’s valuation has largely reset and with a catalyst-rich 12-months ahead. The setup here is favorable as aficamten is an “excellent drug” with a “very high competitive bar,” contends the firm. Stifel thinks Cytokinetics has a credible case for a differentiated evaluation and mitigation strategy that should “de-risk” a multi-billion dollar obstructive hypertrophic cardiomyopathy opportunity.