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Buy Rating Reaffirmed for Rhythm Pharmaceuticals Amid Positive Setmelanotide Trial Expectations

Buy Rating Reaffirmed for Rhythm Pharmaceuticals Amid Positive Setmelanotide Trial Expectations

Joseph Stringer, an analyst from Needham, reiterated the Buy rating on Rhythm Pharmaceuticals (RYTMResearch Report). The associated price target was raised to $66.00.

Joseph Stringer has given his Buy rating due to a combination of factors including the anticipated results of Rhythm Pharmaceuticals’ Phase 3 trial for setmelanotide in treating Hypothalamic Obesity. The trial’s topline data is expected to be released in the first half of 2025, with a likely release in April. Stringer believes this data will act as a significant catalyst for the stock, supported by positive clinical data and feedback from key opinion leaders.
In the most probable scenario, a 15-20% reduction in BMI, adjusted for placebo, could lead to a 20% increase in the company’s share price. Based on these insights, he has reiterated a Buy rating and raised the price target from $64 to $66.

In another report released on March 14, Morgan Stanley also reiterated a Buy rating on the stock with a $72.00 price target.

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