Cytokinetics ‘story likely to pivot’ as M&A prospects dim, says BofA

BofA analyst Jason Zemansky lowered the firm’s price target on Cytokinetics (CYTK) to $60 from $70 and keeps a Neutral rating on the shares after Cytokinetics announced an expansion of its strategic arrangement with partner Royalty Pharma (RPRX) as well as $500M public offering of common stock to support aficamten’s commercialization and the pipeline. While stating that “the news isn’t a surprise” and that the capital raises “make sense,” BofA sees the update likely curtailing speculation, at least near-term, of a potential take-out.