Stifel Nicolaus analyst Paul Matteis has maintained their bullish stance on RYTM stock, giving a Buy rating today.
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Paul Matteis has given his Buy rating due to a combination of factors related to Rhythm Pharmaceuticals’ recent clinical trial results and future prospects. The initial data from the phase 2 open-label study of setmelanotide in Prader-Willi Syndrome (PWS) patients showed promising results, with a significant number of patients experiencing reductions in BMI, even among those who were previously gaining weight. These results suggest a strong potential for success in the upcoming phase 3 trials, where the company aims to achieve a 5% placebo-adjusted BMI reduction over a year.
Additionally, the safety and tolerability profile of setmelanotide was consistent with previous findings, with no serious adverse events leading to discontinuation. This, coupled with the unmet need for effective weight-loss treatments in PWS and the sizable market opportunity, strengthens the commercial potential of setmelanotide. Furthermore, Rhythm Pharmaceuticals is advancing its next-generation RM-718, which could further enhance its market position. These factors collectively underpin the Buy rating given by Paul Matteis.
In another report released today, Canaccord Genuity also maintained a Buy rating on the stock with a $141.00 price target.