Analyst Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Rhythm Pharmaceuticals (RYTM – Research Report) and increased the price target to $70.00 from $69.00.
Ram Selvaraju’s rating is based on several promising factors for Rhythm Pharmaceuticals. The company is approaching significant clinical milestones, including the enrollment of patients in various trials for setmelanotide, which could lead to substantial value inflection points. These trials are targeting conditions like congenital and acquired hypothalamic obesity and Prader-Willi syndrome, with important data readouts expected in the near future. The anticipated results, particularly from the Phase 3 trial for hypothalamic obesity, are seen as crucial given the market potential compared to existing indications.
Moreover, Rhythm Pharmaceuticals has demonstrated a strong sales performance, exceeding revenue forecasts with a notable increase in top-line revenue for the fourth quarter of 2024. The company is expected to continue this upward trend, driven by the uptake of setmelanotide in its approved indications and potential expansion into new markets. Despite a net loss reported for 2024, the financial outlook is improving, with expectations of narrowing losses in the coming years. The company’s solid cash position and recent equity sales further support its operational funding into 2027, reinforcing the Buy rating and an increased price target of $70.
In another report released on February 28, Wells Fargo also maintained a Buy rating on the stock with a $80.00 price target.