Rhythm Pharmaceuticals stock price target raised to $110 from $85 at TD Cowen

Published 05/08/2025, 18:32
Rhythm Pharmaceuticals stock price target raised to $110 from $85 at TD Cowen

Investing.com - TD Cowen raised its price target on Rhythm Pharmaceuticals (NASDAQ:RYTM) to $110.00 from $85.00 on Tuesday, while maintaining a Buy rating on the stock. The company, currently valued at $5.89 billion, has seen its shares surge over 100% in the past year, according to InvestingPro data.

The firm cited Rhythm’s strong second-quarter Imcivree revenue of $48.5 million, representing 29% quarter-over-quarter growth, which exceeded both consensus estimates and TD Cowen’s own projections. InvestingPro data shows the company maintains impressive gross profit margins of 89.62%, though analysts don’t expect profitability this year.

TD Cowen noted that U.S. and European submissions for Imcivree’s supplemental New Drug Application (sNDA) in hypothalamic obesity (HO) remain on track for the third quarter of this year.

The analyst highlighted impressive Phase II data for Rhythm’s drug candidate Biva, which showed comparable efficacy to setmelanotide with acceptable safety. A Phase III trial for Biva in hypothalamic obesity is expected to begin in 2026.

The price target increase from $85 to $110 reflects TD Cowen’s updated discounted cash flow (DCF) analysis, which now accounts for intellectual property protection through 2040. With analyst targets ranging from $80 to $130, and the stock trading near its 52-week high, investors can access comprehensive valuation analysis and 15 additional key insights through InvestingPro’s detailed research report.

In other recent news, Rhythm Pharmaceuticals reported its second-quarter 2025 earnings, revealing a wider-than-expected loss per share. The company’s earnings per share (EPS) came in at -$0.75, missing the analyst forecast of -$0.67, resulting in an 11.94% negative surprise. Despite this earnings miss, Rhythm Pharmaceuticals achieved a revenue of $48.5 million, surpassing the anticipated $43.75 million. The earnings and revenue results highlight the company’s recent financial performance. These developments are essential for investors to consider. Additionally, analysts from various firms continue to monitor the company’s financial health closely. The earnings report provides crucial insights into the company’s recent operations. Investors should keep an eye on further updates from Rhythm Pharmaceuticals as the year progresses.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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