Whitney Ijem, an analyst from Canaccord Genuity, maintained the Buy rating on Rhythm Pharmaceuticals. The associated price target remains the same with $105.00.
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Whitney Ijem has given his Buy rating due to a combination of factors that suggest strong future performance for Rhythm Pharmaceuticals. The recent survey conducted among healthcare professionals indicates a significant expectation for the rapid adoption of setmelanotide, a treatment for hypothalamic obesity (HO), with a projected penetration rate of approximately 51% by the third year of its launch. This anticipated uptake is notably faster than the current model predictions, suggesting a strong market presence sooner than expected.
Furthermore, the availability of oral or once-weekly dosing options is likely to enhance the usage of setmelanotide, making it more appealing to both doctors and patients compared to its current daily administration. Despite the stock’s impressive performance year-to-date, with a 54% increase, Ijem believes there is still substantial room for growth, particularly as the model does not yet account for potential developments in the Prader-Willi syndrome program. These factors collectively underpin the Buy rating, highlighting the promising outlook for Rhythm Pharmaceuticals.
In another report released on July 17, Leerink Partners also reiterated a Buy rating on the stock with a $0.00 price target.