Maintained Buy on Rhythm Pharmaceuticals: EMANATE Setback Offset by Core Obesity Franchise and Pipeline Upside

Needham analyst Joseph Stringer has maintained their bullish stance on RYTM stock, giving a Buy rating today.

Joseph Stringer has given his Buy rating due to a combination of factors, even though the Phase 3 EMANATE trial for setmelanotide failed to meet its main BMI‑reduction goal in all four substudies, partly because many participants discontinued treatment. He notes that investors had already discounted this higher‑risk program, which has weaker genetic linkage to MC4R dysfunction and a less defined market than Rhythm’s core opportunities in Bardet‑Biedl syndrome, hypothalamic obesity, and Prader‑Willi syndrome.

Stringer emphasizes that the key value drivers remain intact, particularly the upcoming U.S. regulatory decision for Imcivree in hypothalamic obesity, ongoing Phase 2 data in Prader‑Willi syndrome, and the progress of next‑generation candidates bivamelagon and RM‑718. Reflecting the removal of EMANATE from his models, he modestly trims his price target to $130 from $139 while maintaining a Buy, indicating continued confidence that the broader pipeline and commercial prospects support attractive upside for RYTM shares.

According to TipRanks, Stringer is a 5-star analyst with an average return of 22.0% and a 45.90% success rate. Stringer covers the Healthcare sector, focusing on stocks such as Stoke Therapeutics, Vaxcyte, and Rhythm Pharmaceuticals.

In another report released today, Citi also reiterated a Buy rating on the stock with a $131.00 price target.