Cantor Initiates a Buy on Cytokinetics, Inc. (CYTK); Sees 77% Upside for the Stock


Mara Goldstein of research firm Cantor came out today with a bullish call on shares of Cytokinetics, Inc. (NASDAQ:CYTK). The analyst initiated coverage on CYTK with an Overweight rating and a price target of $21, which implies a potential upside of 77% from where the stock is currently trading.

Goldstein notes, “Cytokinetics has three late stage programs with quality partners that will begin to read data out in the next year. The company is targeting substantial unmet medical needs and has been methodically pursuing clinical development for its candidates. We think the major overhangs have receded from the shares and that with near term data on the horizon, the shares have opportunity for valuation expansion.”

Though Goldstein is currently not including omecamtiv mecarbil, the firm’s cardiac-specific myosin activator being investigated for a potential role in the treatment of left ventricular systolic heart failure, this is purely her choice to play it safe, as she sees untapped prospective commercial and clinical value in the pipeline drug.

The analyst explains, “Cytokinetics’ development of omecamtiv mecarbil with Amgen is a substantial opportunity given the 6+ million individuals in the U.S. with heart failure. The Phase III program has just gotten underway and considering the time to data and mixed Phase II results, we are not including this candidate in our valuation. We do like the program based on the strength of the COSMIC-HF study, but are being conservative.”

Ultimately, the forthcoming data will be a key wave maker for share success, and the analyst sees great potential ahead. “Cytokinetics has programs in mid-to-late stage human development for the treatment of a variety of disorders that involve compromised muscle performance. The company has multiple partnerships with solid economics, and is developing drug candidates with novel mechanisms in underserved medical needs. Further, recent commitments by Amgen and Astellas for clinical programs have been de-risking events for investors, in our view,” Goldstein contends.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, two-star analyst Mara Goldstein is ranked #2,195 out of 4,279 analysts. Goldstein has a 43% success rate and gains 0.4% in her annual returns.

TipRanks analytics demonstrate CYTK as a Strong Buy. Out of 5 analysts polled by TipRanks in the last 3 months, all 5 are bullish on Cytokinetics stock. With a return potential of 74%, the stock’s consensus target price stands at $20.67.

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