Buy Rating Affirmed for Rhythm Pharmaceuticals Amid Positive Prescription Growth and Pipeline Potential

Joseph Stringer, an analyst from Needham, maintained the Buy rating on Rhythm Pharmaceuticals (RYTM – Research Report). The associated price target was lowered to $46.00.

Joseph Stringer has given his Buy rating due to a combination of factors surrounding Rhythm Pharmaceuticals. Despite the first quarter sales of Imcivree coming in slightly lower than expected, the continued growth in prescriptions indicates a robust underlying demand. Stringer has observed that the total U.S. prescriptions have increased steadily since the product’s launch, which is an encouraging sign for future sales potential. Moreover, the company’s ongoing commitment to its pipeline, including the expected results from a Phase 3 trial, provides a positive outlook for its long-term growth.
While there may be some downward pressure on the stock in the short term due to the market’s reaction to the quarterly sales figures, Stringer believes the company’s fundamentals remain strong. The analyst has adjusted the sales estimates and price target to align with the latest financial data, yet maintains a positive stance on the stock’s potential for appreciation. The combination of solid prescription growth and promising pipeline developments supports the Buy rating, suggesting confidence in Rhythm Pharmaceuticals’ prospects despite the conservative adjustment in sales forecasts.

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Rhythm Pharmaceuticals (RYTM) Company Description:

Rhythm Pharmaceuticals, Inc. develops and commercializes peptide therapeutics for the treatment of gastrointestinal diseases and genetic deficiencies. It focuses on the treatment for Prader-Willi Syndrome and Pro-Opiomelanocortin deficiency obesity. The firm rapidly develops setmelanotide for rare genetic disorders of obesity caused by MC4 pathway deficiencies and provides advance setmelanotide for POMC deficiency obesity and LEPR deficiency obesity as first indications in upstream MC4 pathway deficiencies. The company was founded by Bart Henderson in February 2010 and is headquartered in Boston, MA.