Rhythm Pharmaceuticals price target raised to $95 from $72 at Needham

Needham raised the firm’s price target on Rhythm Pharmaceuticals (RYTM) to $95 from $72 and keeps a Buy rating on the shares after the company announced positive data from its Phase 2 trial of daily oral bivamelagon in Hypothalamic Obesity. The firm increased its PoS for the biva’ program to 70% form 40% based on the results, and lowered its discount rate in its DCF valuation to 8% from 9.5% to account for lower overall risk. With some manageable exceptions biva’ tolerability profile looks better than setmelanotide, the analyst tells investors in a research note.