Analyst Faisal Khurshid from Leerink Partners reiterated a Buy rating on Rhythm Pharmaceuticals and increased the price target to $102.00 from $88.00.
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Faisal Khurshid has given his Buy rating due to a combination of factors, primarily driven by the promising results from the Phase 2 data of bivamelagon in acquired hypothalamic obesity. The data is seen as a near best-case scenario, significantly boosting investor confidence with a more than 30% increase in stock value and positive feedback on its efficacy. The minimal safety concerns further strengthen the outlook for Rhythm Pharmaceuticals’ MC4R franchise and its lifecycle management strategy.
Additionally, the investor response to the data has been largely positive, with the efficacy being well-received and any adverse events considered manageable. The dose-dependent efficacy trend is encouraging for future studies, and the potential for additional indications, such as Prader-Willi syndrome, provides further upside. The increased probability of success for Rhythm’s next-generation programs, which focus on more selective MC4R agonism, also contributes to the positive outlook and supports the Buy rating.
In another report released yesterday, Goldman Sachs also initiated coverage with a Buy rating on the stock with a $97.00 price target.
RYTM’s price has also changed dramatically for the past six months – from $56.170 to $89.040, which is a 58.52% increase.