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Investing.com - Citizens JMP has raised its price target on Rhythm Pharmaceuticals (NASDAQ:RYTM) to $135.00 from $130.00 while maintaining a Market Outperform rating. The stock, currently trading at $88.57, has delivered an impressive 101% return over the past year. According to InvestingPro data, analysts maintain a Strong Buy consensus on RYTM, with price targets ranging from $80 to $135.
The firm cited continued growth in demand for Imcivree in its approved indications as Rhythm works to expand its pipeline opportunities. The company, which boasts impressive gross margins of 89.62% and strong revenue growth of 48.88% in the last twelve months, remains on track to submit regulatory applications for setmelanotide for hypothalamic obesity (HO) in the U.S. and EU this quarter. InvestingPro subscribers can access 12 additional key insights about RYTM’s financial health and growth prospects.
Citizens JMP expressed confidence in approval with a 90% probability of success, based on the strength of Phase 3 TRANSCEND data. Rhythm estimates there are approximately 5,000-10,000 HO patients in the U.S., representing a total addressable market of about $2 billion-$4 billion based on setmelanotide’s wholesale acquisition cost.
The company also presented clinical data for its follow-on MC4R agonist bivamelagon in HO patients, showing the once-daily oral drug has comparable efficacy to setmelanotide with a better hyperpigmentation profile. The pivotal program for bivamelagon is expected to start in 2026.
Several upcoming readouts could potentially drive shares higher, including setmelanotide’s open-label Phase 2 readout in Prader-Willi syndrome before year-end 2025, Phase 3 EMANATE trial data in Q1 2026, Phase 3 Japanese data in Q1 2026, and Phase 1 data for weekly subcutaneous MC4R agonist RM-718 in HO patients likely in the first half of 2026.
In other recent news, Rhythm Pharmaceuticals reported its second-quarter 2025 earnings, revealing a larger-than-expected loss per share. The company’s earnings per share (EPS) were -$0.75, missing analyst forecasts of -$0.67, which represents an 11.94% negative surprise. Despite this, Rhythm Pharmaceuticals’ revenue for the quarter was $48.5 million, surpassing the forecast of $43.75 million. This revenue growth was highlighted by TD Cowen, which noted a 29% quarter-over-quarter increase in Imcivree revenue. As a result, TD Cowen raised its price target for Rhythm Pharmaceuticals from $85 to $110, maintaining a Buy rating on the stock. These recent developments reflect the company’s strong performance in revenue, despite challenges in meeting earnings expectations.
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