Morgan Stanley analyst Jeffrey Hung upgraded the rating on Cytokinetics (CYTK – Research Report) to a Buy today, setting a price target of $67.00.
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Jeffrey Hung has given his Buy rating due to a combination of factors that suggest a positive outlook for Cytokinetics. Despite recent declines in share price driven by concerns over the REMS program for aficamten and its comparison to Bristol’s Camzyos, there are inherent advantages to aficamten that could benefit the stock. Characteristics such as faster titration and reversibility allow patients to achieve the target dose more quickly, with a higher percentage reaching the maintenance phase compared to Camzyos.
Additionally, Hung sees potential upside over the next year with anticipated US approval of aficamten and important upcoming study results, such as the MAPLE-HCM comparison with metoprolol, which could bolster its position as a first-line therapy. He believes that the current investor concerns are becoming clearer, and as such, the risk/reward profile is tilted in favor of the upside. Overall, Jeffrey Hung considers CYTK shares to be undervalued at present levels, with significant growth potential.
In another report released on February 7, Citi also initiated coverage with a Buy rating on the stock with a $86.00 price target.