Cytokinetics weakness a buying opportunity, says Truist

Following Cytokinetics’ (CYTK) CFO’s resignation, Truist caught up with the CEO of the company, who noted that this was related to personal health reasons that require immediate attention and said the news was not surprising to the team. The firm came away with its talks with management feeling that the stock reaction to this news is “not warranted” and sees the weakness as a buying opportunity, though it also acknowledges that some of the pressure on the stock this morning could be due to a Reuters article indicating Novartis’ (NVS) interest in MorphoSys (MOR) as a potential M&A target given that there were news articles earlier in the year indicating that Cytokinetics was an M&A target for interested parties that included Novartis. The firm, which continue to view Cytokinetics as a potential M&A target, keeps a Buy rating and $86 price target on the shares.