Rhythm Pharmaceuticals (RYTM – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Paul Matteis from Stifel Nicolaus reiterated a Buy rating on the stock and has a $94.00 price target.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Paul Matteis has given his Buy rating due to a combination of factors that highlight the potential growth and strategic value of Rhythm Pharmaceuticals. Firstly, the company’s drug setmelanotide has shown promising results in treating hypothalamic obesity (HO), a market with significant unmet needs and limited competition. The positive phase 3 data for setmelanotide exceeded expectations, and the potential market size for HO is viewed as substantial, with estimates suggesting it could exceed $2 billion worldwide.
Additionally, the potential success of Rhythm’s pipeline drugs, bivamelagon and RM-718, could further extend the company’s intellectual property protection and enhance its market position. These drugs have shown encouraging preclinical and clinical data, and their development could provide a strategic advantage by extending the MC4R franchise’s IP beyond 2040. Matteis’s analysis, supported by medical claims data and expert feedback, suggests that the current market valuation may be conservative, indicating a potential upside for investors.
In another report released on May 23, H.C. Wainwright also reiterated a Buy rating on the stock with a $80.00 price target.