FBR Capital Remains bullish on Cytokinetics (CYTK) Ahead of COSMIC-HF Clinical Results

FBR Capital reiterated an Outperform rating and $14.00 price target on Cytokinetics (NASDAQ: CYTK) ahead of clinical results release for COSMIC-HF. The results are expected to be available in 4Q15. Analyst Vernon Bernardino estimates that positive results could be worth $5 per share in upside to current prices.

Bernardino commented, "We believe recent movement in the share price of Cytokinetics (CYTK), an FBR Top Pick, indicates investors are gradually developing a positive view (up 18% since the announcement of 2Q15 results vs. S&P 500 off 7%) prior to the release of clinical results from COSMIC-HF, the company’s 450-patient Phase II study with omecamtiv mecarbil in heart failure (HF), which are expected in 4Q15. We estimate positive results could be worth $5 per share in upside to current prices. Hence, with the shares currently trading at an enterprise value of $178M, which by comparison is a moderate premium to the company’s cash ($107M or $2.71 in cash per share), we consider CYTK still undervalued. We therefore reiterate our Outperform rating and $14 price target."

For an analyst ratings summary and ratings history on Cytokinetics click here. For more ratings news on Cytokinetics click here.

Shares of Cytokinetics closed at $7.25 yesterday.

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