Rhythm Pharmaceuticals stock price target raised to $130 by Citizens JMP

Investing.com - Citizens JMP raised its price target on Rhythm Pharmaceuticals (NASDAQ:RYTM) to $130.00 on Monday, maintaining its Market Outperform rating on the stock. The company, now valued at $5.69 billion, has seen its shares surge over 73% in the past year, with InvestingPro data showing strong momentum across multiple timeframes.

The price target adjustment follows new data from the Phase 3 TRANSCEND trial of setmelanotide and Phase 2 data for bivamelagon presented at the ENDO conference.

Citizens JMP analyst Jonathan Wolleben cited the "impressive efficacy and safety" of MC4R agonists in hypothalamic obesity as supporting the firm’s continued positive outlook on the company.

The $130 price target is described as "risk-adjusted" and "DCF-derived" in the analyst’s comments accompanying the rating.

Rhythm Pharmaceuticals is developing treatments targeting melanocortin-4 receptor (MC4R) pathway deficiencies for patients with rare genetic obesity disorders.

In other recent news, Rhythm Pharmaceuticals announced the pricing of its upsized public offering at $85 per share, aiming to raise approximately $175 million in gross proceeds. This follows a series of positive developments for the company, including the release of favorable Phase 2 trial data for bivamelagon in hypothalamic obesity, which has led to several analyst upgrades. Oppenheimer raised its price target on the stock to $110, citing the drug’s potential as a daily oral alternative to setmelanotide. Goldman Sachs resumed coverage with a Buy rating and a $97 price target, highlighting a potential $1.9 billion peak sales opportunity in the hypothalamic obesity market. Morgan Stanley (NYSE:MS) maintained its Overweight rating, noting the promising results from Phase 2 trials that support advancing bivamelagon to Phase 3 trials. Leerink Partners also increased its price target to $102, emphasizing the positive investor feedback and the drug’s efficacy. These developments reflect a strong interest in Rhythm Pharmaceuticals’ expanding treatment pipeline and potential market opportunities.

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