Analyst Jason Zemansky from Bank of America Securities reiterated a Hold rating on Cytokinetics (CYTK – Research Report) and decreased the price target to $50.00 from $54.00.
Jason Zemansky’s rating is based on the recent developments surrounding Cytokinetics’ drug aficamten, which have introduced uncertainties impacting its market potential. The FDA’s decision to extend the PDUFA date due to the requirement of a REMS has been perceived as a setback, as it challenges the initial expectations that aficamten could avoid the monitoring requirements that hindered its competitor, Camzyos. This development has led to renewed concerns about the drug’s market opportunity and has pressured Cytokinetics’ stock price.
Despite the company’s confidence in achieving a differentiated label, the likelihood of requiring a monitoring program has increased. This has prompted a revision of the sales forecast for aficamten, reducing the projected 2030 unadjusted sales from $1.7 billion to $1.5 billion. Consequently, the price objective has been adjusted to $50 from $54, reflecting the perceived fair value of the shares in light of the current uncertainties. Therefore, Jason Zemansky maintains a Hold rating, indicating a neutral stance on the stock.
Zemansky covers the Healthcare sector, focusing on stocks such as Cytokinetics, Insmed, and BridgeBio Pharma. According to TipRanks, Zemansky has an average return of 3.7% and a 44.85% success rate on recommended stocks.