Morgan Stanley reiterates Overweight rating on Rhythm Pharmaceuticals stock

Published 10/07/2025, 13:34
Morgan Stanley reiterates Overweight rating on Rhythm Pharmaceuticals stock

Investing.com - Morgan Stanley (NYSE:MS) has reiterated an Overweight rating on Rhythm Pharmaceuticals (NASDAQ:RYTM) with a price target of $95.00. The stock, currently trading at $89, has surged 35% in the past week and is approaching its 52-week high of $89.05. According to InvestingPro data, analyst targets range from $76 to $130.

The firm cited Phase 2 data for bivamelagon in hypothalamic obesity (HO) that showed robust reductions in body mass index (BMI) exceeding 10%, comparable to the range seen with setmelanotide but with an improved profile.

Morgan Stanley noted that these early results support the advancement of bivamelagon into Phase 3 trials, which are expected in the first half of 2026.

The investment bank believes the data confirms bivamelagon’s potential to expand and extend opportunities in the hypothalamic obesity market.

Morgan Stanley maintains its Overweight rating on Rhythm Pharmaceuticals based on this positive clinical development for the company’s obesity treatment pipeline.

In other recent news, Rhythm Pharmaceuticals announced the pricing of its upsized public offering at $85 per share, expecting to raise approximately $175 million in gross proceeds. This offering is part of the company’s ongoing financial activities, with joint book-running managers including Morgan Stanley and BofA Securities. Additionally, Goldman Sachs resumed coverage of Rhythm Pharmaceuticals with a Buy rating, setting a price target of $97.00, expressing optimism about the potential market for hypothalamic obesity treatments. Oppenheimer also raised its price target for the company to $110.00, following positive Phase 2 results for bivamelagon, a potential treatment for acquired hypothalamic obesity. Leerink Partners increased its price target to $102.00, citing positive trial data for bivamelagon as a significant milestone. The company is actively pursuing regulatory approval for the expansion of Imcivree’s label in the US and EU, with several potential catalysts expected by year-end. These developments reflect ongoing interest and confidence in Rhythm Pharmaceuticals’ growth prospects among analysts and investors.

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