Cytokinetics (CYTK): Revisiting Valuation After MYQORZO’s China Approval and Positive EU CHMP Opinion

Cytokinetics (CYTK) just cleared two big regulatory hurdles for its heart drug MYQORZO, with full approval in China and a positive EU opinion, and that one-two punch is reshaping how investors view its pipeline.

See our latest analysis for Cytokinetics.

The stock has been choppy in the short term, with a 1 month share price return of minus 6.7 percent. However, a 90 day share price return above 30 percent and a 1 year total shareholder return just under 30 percent suggest momentum is still building as these MYQORZO milestones de risk the story.

If MYQORZO's progress has you rethinking your healthcare exposure, this is a good moment to explore other potential leaders across healthcare stocks.

With MYQORZO in motion across China and Europe and Wall Street still projecting upside to fair value, are investors looking at an early stage rerating opportunity here, or has the market already priced in Cytokinetics next leg of growth?

Most Popular Narrative Narrative: 22% Undervalued

With Cytokinetics last closing at 62.02 dollars against a narrative fair value near 79.56 dollars, the story leans toward substantial upside if execution lands.

In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be $649.5 million, earnings will come to $90.6 million, and it would be trading on a PE ratio of 120.4x, assuming you use a discount rate of 7.0%.

Read the complete narrative.

Wondering what kind of revenue surge, margin lift, and premium multiple could justify that valuation gap? The narrative lays out a surprisingly aggressive earnings runway and future pricing power assumptions that might change how you see CYTK.

Result: Fair Value of $79.56 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, lingering regulatory uncertainty around aficamten and the risk of slower than expected commercial uptake could challenge this upbeat valuation story.

Find out about the key risks to this Cytokinetics narrative.

Build Your Own Cytokinetics Narrative

If you want to dig into the numbers yourself or challenge this view with your own assumptions, you can build a fresh narrative in minutes: Do it your way.

A great starting point for your Cytokinetics research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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