Rhythm Pharmaceuticals (RYTM – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Tazeen Ahmad from Bank of America Securities maintained a Buy rating on the stock and has a $68.00 price target.
Tazeen Ahmad’s rating is based on the promising outlook for Rhythm Pharmaceuticals, particularly due to the positive Phase 3 trial results for setmelanotide in treating hypothalamic obesity (HO). The trial showed a significant reduction in body mass index, which is a notable achievement given the lack of approved therapies for HO. The CEO, David Meeker, expressed confidence in the drug’s risk/benefit profile and the company’s plans to file a supplementary New Drug Application in the third quarter, with expectations for a priority review without the need for an advisory committee.
Additionally, the company sees a strong commercial opportunity in the HO market, estimating a prevalent population of 5,000 to 10,000 in the U.S., which is well-managed by endocrinologists. Rhythm Pharmaceuticals plans to expand its salesforce to effectively cover this market. The company also anticipates a steady growth trajectory for its Imcivree franchise in Bardet-Biedl syndrome (BBS) and has strategies in place to mitigate potential macroeconomic impacts. These factors contribute to the Buy rating, supported by a price objective of $68, indicating potential upside from the current price.
In another report released on April 10, Canaccord Genuity also maintained a Buy rating on the stock with a $92.00 price target.
RYTM’s price has also changed moderately for the past six months – from $50.190 to $60.480, which is a 20.50% increase.