Optimistic Buy Rating for Rhythm Pharmaceuticals Driven by Promising Pipeline and Strategic Developments

In a report released yesterday, Dennis Ding from Jefferies maintained a Buy rating on Rhythm Pharmaceuticals (RYTM – Research Report), with a price target of $80.00.

Dennis Ding has given his Buy rating due to a combination of factors surrounding Rhythm Pharmaceuticals’ promising pipeline and strategic developments. One of the key reasons is the anticipated Phase II data for their oral treatment for hypothalamic obesity (HO), which is expected to show significant BMI reduction and has been de-risked, thus extending the franchise’s potential beyond the current expiration dates. Additionally, the management’s confidence in the weekly subcutaneous (subQ) treatment, which aligns closely with the already approved setmelanotide, adds to the positive outlook.
Ding also highlights the potential of the setmelanotide Phase II open-label trial for Prader-Willi Syndrome (PWS), which, despite previous challenges, could provide a significant opportunity if successful. The management’s strategy to focus on patient starts rather than immediate revenue post-launch further supports the long-term growth prospects. These elements combined with the company’s proactive approach to addressing safety concerns and their strategic positioning in the market, underpin Ding’s optimistic Buy rating for Rhythm Pharmaceuticals.

Ding covers the Healthcare sector, focusing on stocks such as NewAmsterdam Pharma Company, Rhythm Pharmaceuticals, and Immunovant. According to TipRanks, Ding has an average return of -8.9% and a 33.33% success rate on recommended stocks.

In another report released today, Citizens JMP also reiterated a Buy rating on the stock with a $84.00 price target.