Rhythm Pharmaceuticals: Early Promising PWS Data and Robust MC4R Pipeline Support Buy Rating and $140 Target

Bank of America Securities analyst Tazeen Ahmad has maintained their bullish stance on RYTM stock, giving a Buy rating yesterday.

Tazeen Ahmad has given his Buy rating due to a combination of factors related to Rhythm Pharmaceuticals’ early but promising data in Prader–Willi syndrome (PWS) and the company’s broader development strategy. The initial open‑label results for setmelanotide in PWS show encouraging and consistent reductions in BMI in most evaluable patients by Month 3 and sustained effects in those with longer follow‑up, alongside meaningful improvements in hyperphagia and body composition. Management expects that benefits could strengthen with additional time on therapy, and qualitative physician feedback suggests patients are generally feeling better after treatment initiation. The analyst also notes that Rhythm plans to deliver a comprehensive 6‑month data set for all 18 patients in 1H26, which will be critical for defining the drug’s competitive positioning and confirming the path toward a pivotal program, supporting the $140 price objective.

Ahmad’s rating is based as well on the high feasibility of advancing to a successful phase 3 trial and the potential for value creation beyond the current asset. Rhythm intends to meet regulators after the 6‑month readout to finalize a pivotal study design likely centered on BMI reduction, with key secondary measures in hyperphagia and body composition, and potentially enriched by quality‑of‑life endpoints and exit interviews to capture the full clinical benefit. The analyst views patient recruitment as achievable, helped by broad eligibility criteria, a strongly engaged PWS community, significant unmet need, and a differentiated clinical profile, with competitor timelines potentially aiding enrollment. In addition, the pipeline of next‑generation MC4R agonists, including weekly injectable RM‑718 and oral bivamelagon, offers multiple shots on goal and optionality for future pivotal development, with hyperpigmentation considered a manageable trade‑off in this high‑need population. Collectively, these elements underpin confidence in Rhythm’s long‑term growth prospects and justify maintaining a Buy rating on RYTM shares.

Ahmad covers the Healthcare sector, focusing on stocks such as Incyte, Neurocrine, and Ascendis Pharma. According to TipRanks, Ahmad has an average return of 3.7% and a 54.60% success rate on recommended stocks.

In another report released yesterday, H.C. Wainwright also reiterated a Buy rating on the stock with a $123.00 price target.