Morgan Stanley analyst Michael Ulz maintained a Buy rating on Rhythm Pharmaceuticals (RYTM – Research Report) today and set a price target of $80.00.
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Michael Ulz has given his Buy rating due to a combination of factors including the promising outlook for Rhythm Pharmaceuticals’ bivamelagon, a next-generation MC4R agonist. The upcoming Phase 2 data for bivamelagon in treating hypothalamic obesity (HO) is anticipated to show a favorable risk/reward profile, with potential to expand the market opportunity due to its improved characteristics over the existing treatment, setmelanotide.
Bivamelagon offers advantages such as more convenient oral dosing and reduced risk of hyperpigmentation, which could enhance patient compliance and broaden its use. Additionally, the extended patent protection for bivamelagon beyond 2040 provides a strategic edge. The positive Phase 1 data and the validated target further support the potential for significant BMI reduction, making the investment in Rhythm Pharmaceuticals a compelling opportunity.
In another report released on May 29, Stifel Nicolaus also reiterated a Buy rating on the stock with a $94.00 price target.