ugurhan
Morgan Stanley downgraded its rating of Cytokinetics (NASDAQ:CYTK) to equal weight, but raised its price target, stating it saw the shares approaching full valuation.
The investment bank noted that the shares have appreciated almost 90% since the company announced positive Phase 3 data for its cardiomyopathy drug aficamten, helped by reports that pharma companies may be interested in the acquiring the drug developer.
“We think CYTK could potentially have strategic value and believe there is possible additional upside,” wrote the analysts in their note, adding their bull case was $135 per share. They added that their bear case was $40 per share, which assumes the company commercializes aficamten on its own “should strategic value not be realized.”
Morgan Stanley raises its probably of success for aficamten in the treatment of obstructive hypertrophic cardiomyopathy to 90% from 75% and raised its price target to $90 from $60.
