Cytokinetics upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Jeffrey Hung upgraded Cytokinetics (CYTK) to Overweight from Equal Weight with a price target of $67, down from $70. The firm believes investor concerns are now better understood, and the stock’s risk/reward is skewed to the upside. After Bristol Myers (BMY) announced on its Q4 call that it has an FDA action date in April for easing the risk evaluation and mitigation strategies echo monitoring requirements in the U.S., the shares declined over 15% to 52-week lows. This has been driven by investor concerns that the REMS for aficamten may ultimately be similar to that for Camzyos, even if different than the current program for Bristol’s drug, contends Morgan Stanley. The firm now sees “multiple sources for upside” over the next 12 months for shares of Cytokinetics.