Analysts Start MyoKardia With Positive Ratings

MyoKardia, Inc. (NASDAQ: MYOK) has now moved far enough beyond the October 28 IPO pricing that the analysts in the underwriting syndicate can now begin their awaited analyst coverage. The end of the quiet period brought what appears to be mostly positive analyst coverage.

The company sold 5,437,500 shares of common stock at a public offering price of $10.00 per share at the end of October. While all of the common stock was being offered by MyoKardia, the offering was very far under the $15.00 to $17.00 range that had previously been indicated.

24/7 Wall St. has so far tracked three analyst initiations. All three were positive, but some more than others. Its stock closed at $11.83 on Friday, and its post-IPO range is $8.98 to $12.54.

Cowen & Co. was more aggressive than most analysts. They started coverage with an Outperform rating and a $24.00 price target. Wedbush Securities initiated coverage with an Outperform rating and assigned a price target of $22.00 in its call.

Credit Suisse started MyoKardia with an Outperform rating and assigned a $18 price target. Their take is that the company is bringing precision medicine into the cardiovascular space. Credit Suisse noted:

We see MyoKardia as one of the leaders in developing approaches based on precision medicine for rare cardiovascular conditions, with an initial focus on the large unmet need within hypertrophic cardiomyopathy (HCM) and dilated cardiomyopathy (DCM). Its lead product, MYK-461, has been shown to be well tolerated and safe in a Phase 1 trial of healthy volunteers. It is currently being evaluated in three Phase 1 clinical trials, setting the stage for important newsflow in 2016 and a potential NDA submission in the second half of 2020. We view this story as a high-risk, high-reward opportunity.

Myokardia shares were last seen up 2.8% at $12.16 on only 90,000 shares as of about 2:20 p.m. Eastern Time. The company’s market cap is $329 million.