Cowen Initiates Outperform On Cytokinetics, Inc.; Sees 36% Upside For The Stock

In a research report released on Wednesday, Cowen analyst Ritu Baral initiated coverage on shares of Cytokinetics Inc. (NASDAQ:CYTK) with an Outperform rating and a $9 price target, which represents a potential upside of 35.5% from where the stock is currently trading.

Baral wrote, “We have confidence in upcoming Ph2b COSMIC-CHF heart failure data for AMGN-partnered omecamtiv, given clean DSMB looks. We expect the data to trigger a decision by AMGN to enter Ph3 development in early 2016. We think chances of success for CYTK’s ALS program with tirasemtiv which just entered Ph3 is ~45% given this KOL input and precedent data.”

The analyst explained his price target, noting, “We reach our $9 price target for CYTK on a pNPV basis. All of the value in our pNPV is attributed to Omecamtiv ($1.88B US sales), Tirasemtiv ($653M) US & EU sales) and CK-2127107 ($678M US and EU sales). We estimate omecamtiv peak US sales of $1.88B at a 19% market share. We estimate tirasemtiv peak US sales of $543MM at a 70% market share and peak EU sales of $110M at a 50% market share. We estimate CK-2127107 peak US and EU sales of $678M at 40% market share. At the end of the first quarter CYTK had $117.5M in cash. 1Q15 cash burn rate was 24.64M.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ritu Baral has a total average return of 22.3% and a 50.0% success rate. Baral has a 22.3% average return when recommending CYTK, and is ranked #100 out of 3708 analysts.

All the 4 analysts polled by TipRanks rate Cytokinetics stock a Buy. With a return potential of 101%, the stock’s consensus target price stands at $13.33.


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