Valuation Of Cytokinetics Shares Remain Attractive At These Levels, Says Roth Capital


In a research report released yesterday, Roth Capital analyst Joseph Pantginis reiterated a Buy rating on Cytokinetics Inc. (CYTK) with a $13 price target, following CYTK’s second quarter earnings results, posting EPS of ($0.23), versus Pantginis’ estimate of ($0.38) and consensus estimate of ($0.32). CYTK posted revenue of $7.8 million, versus Pantginis’ estimate of $4.0 million and consensus estimate of $7.01 million.

Pantginis wrote, “Enrollment continues in the expansion phase of the randomized Phase II COSMIC-HF trial of omecamtiv mecarbil in heart failure and left ventricular systolic dysfunction that is being run in collaboration with Amgen (AMGNNC). Over 150 of 450 patients are now enrolled. In the 2H14, Cytokinetics plans to meet with regulatory authorities regarding potential next steps for the tirasemtiv program. Recall that earlier this year the BENEFIT-ALS trial failed to meet its primary endpoint of change in ALS Functional Rating Scale. Subsequent analyses, however, did show that the drug led to a durable decrease in the decline in Slow Vital Capacity (respiratory function), which is considered to be a predictor of disease progression. Tirasemtiv is the only drug to date that has shown any effect and benefits on respiratory function in ALS. We continue to believe that the positive enduring effect of tirasemtiv on SVC should inform the future steps that CYTK will take regarding the clinical development of tirasemtiv. We believe the company’s meetings with regulatory authorities in 2H14 will bring more clarity on next steps for this program. We currently view the tirasemtiv program as upside potential to the shares, as our current valuation is based solely on the omecamtiv mecarbil program”.

The analyst concluded, “We believe valuation remains attractive, based solely on its omecamtiv mecarbil program. CYTK plans to engage regulatory authorities in 2H regarding next steps for tirasemtiv program, which we view as important visibility”. 

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform analyst Joseph Pantginis has a -9.5% average return and a 33.0% success rate. Pantginis has a -45.1% average return when recommending CYTK, and is ranked #3156 out of 3195 analysts.

For more ratings news on CYTK click here.

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