Morgan Stanley analyst Michael Ulz reiterated a Buy rating on Rhythm Pharmaceuticals yesterday and set a price target of $95.00.
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Michael Ulz has given his Buy rating due to a combination of factors that highlight the promising potential of Rhythm Pharmaceuticals’ treatments for hypothalamic obesity (HO). The company presented positive Phase 3 data for setmelanotide, showing significant reductions in body mass index (BMI), which exceeded expectations and demonstrated sustained improvement over time. Additionally, qualitative interviews from study participants indicated meaningful enhancements in quality of life, further supporting the drug’s impact.
Furthermore, the Phase 2 data for bivamelagon, a next-generation oral MC4R agonist, also showed robust BMI reductions, surpassing the benchmark despite a brief treatment period. This drug not only has the potential to expand the HO treatment market but also offers an extended intellectual property timeline. The upcoming regulatory filing for setmelanotide and the anticipated Phase 3 study for bivamelagon underscore the company’s strategic advancements, reinforcing the Buy rating as Rhythm Pharmaceuticals continues to raise awareness and progress in the HO space.
Ulz covers the Healthcare sector, focusing on stocks such as Rocket Pharmaceuticals, Rhythm Pharmaceuticals, and Sarepta Therapeutics. According to TipRanks, Ulz has an average return of -2.0% and a 40.26% success rate on recommended stocks.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $109.00 price target.