Roth Capital Maintains Buy On Cytokinetics Following 3Q14 Results; Sees 233% Upside


Roth Capital analyst Joseph Pantginis maintained a Buy rating on Cytokinetics (NASDAQ:CYTK) with a $13 price target, which represents a potential upside of 233% from where the stock is currently trading. The report follows the company’s third-quarter results, posting EPS of ($0.16), versus Roth’s estimate of ($0.27) and consensus estimate of ($0.24). 

Pantginis wrote, “We are encouraged by the progress the company has made towards advancing clinical programs and towards defining a path forward for tirasemtiv. During the quarter, following consultations with clinical and statistical experts, CYTK concluded that the final analysis of the Phase IIb BENEFIT-ALS study data support continued investigation of tirasemtiv in ALS patients in a potential Phase III study. A robust and statistically significant reduction of slow vital capacity (SVC) decline in tirasemtiv-treated patients compared with placebo persisted for the 12 weeks of dosing and up to four additional weeks. CYTK has initiated discussions with the FDA regarding the BENEFIT-ALS data and the likely use of SVC as a primary endpoint in the proposed Phase III study, which could begin in 2015. KOLs place a major emphasis on SVC, a measure of breathing capacity, as a meaningful clinical endpoint for ALS patients. Recall that SVC has been shown in previous ALS studies to be an important measure of disease progression and predictor of survival. BENEFITALS is the only study to date to show a positive effect on this clinical outcome measure. Currently our valuation is based solely on the omecamtiv mecarbil collaboration with Amgen.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joseph Pantginis has a total average return of -7.1% and a 43.0% success rate. Pantginis has a -29.6% average return when recommending CYTK, and is ranked #3312 out of 3354 analysts.

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