Cytokinetics started at buy by Stifel, aficamten highlighted

Stifel has initiated coverage of Cytokinetics (NASDAQ:CYTK) with a buy rating, citing its drug aficamten.

The bank noted the stock was "out of favor" in the wake of a "controversial" deal with Royalty Pharma (RPRX) and no M&A, but that the "valuation has largely reset" and the setup was now "favorable," with a "catalyst-rich" one to two years ahead.

Stifel said it viewed aficamten as "an excellent drug" that "sets a very high competitive bar" and "has a credible case for a differentiated REMS that should de-risk a multi-billion dollar oHCM floor."

"With M&A out of the stock, we don't think reinvigorated strategic interest is completely off-the-table as a plausible upside scenario," it added.

Stifel set its price target for the stock at $80.