Stifel ups Rhythm Pharmaceuticals target, calls pullback buying opportunity

Stifel analyst Dae Gon Ha raised the firm’s price target on Rhythm Pharmaceuticals to $64 from $50 and keeps a Buy rating on the shares. The firm thinks weakness in shares reflects Imcivree revenue missing consensus and management commentary on commercial progress, but it maintains its views on Imcivree given expected quarterly volatility in rare disease launches, the analyst tells investors. In addition, the “main growth driver” of hypothalamic obesity, or HO, has made two “important advancements,” namely the enrollment completion in Phase 3 and a new opportunity in Japan that the firm sees as “achievable.” The firm, which thinks share weaknesses represent an attractive buying opportunity ahead of data due in the first half of 2024, is increasing its view of HO probability of success to 90%, the analyst added.