Bank of America Securities analyst Tazeen Ahmad reiterated a Buy rating on Rhythm Pharmaceuticals today and set a price target of $109.00.
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Tazeen Ahmad has given his Buy rating due to a combination of factors including the promising data from Rhythm Pharmaceuticals’ next-generation oral MC4R agonist, bivamelagon (biva’). The data suggests that biva’ offers efficacy comparable to the existing treatment, setmelanotide, but with improved tolerability due to a lower incidence of hyperpigmentation. This could potentially expand the market by addressing safety concerns associated with current therapies.
Furthermore, the analyst notes the potential for biva’ to capture a significant portion of the market if it continues to demonstrate similar efficacy with the added convenience of oral dosing. The positive outlook is also supported by the anticipated value of Rhythm’s pipeline, including the next-gen weekly MC4R agonist, RM-718, which is expected to provide further insights into efficacy and tolerability. These factors, combined with projected sales growth and a new price objective of $109, underpin the Buy rating.
In another report released yesterday, Morgan Stanley also reiterated a Buy rating on the stock with a $95.00 price target.