Citigroup Issues Positive Forecast for Rhythm Pharmaceuticals (NASDAQ:RYTM) Stock Price

Key Points

• Citigroup raised its price target for Rhythm Pharmaceuticals from $142 to $143 and maintained a “buy” rating, implying 31.16% upside from the previous close. The stock has a consensus “Moderate Buy” rating and an average target of $142.38.
• Rhythm’s second-quarter results exceeded expectations, with revenue rising 46.9% year over year to $71.25 million and a loss of $0.73 per share versus the expected $0.81 loss. Shares traded at $109.03, while several other analysts set targets ranging from $133 to $160.
• The company’s outlook is supported by encouraging early data for experimental obesity drug RM-718, but Rhythm remains unprofitable and the results are based on only seven patients, leaving clinical and execution risks.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) had its price objective increased by equities researchers at Citigroup from $142.00 to $143.00 in a report issued on Wednesday,Benzinga reports. The firm currently has a "buy" rating on the stock. Citigroup's price target suggests a potential upside of 31.16% from the company's previous close.

A number of other analysts have also commented on the company. TD Cowen reiterated a "buy" rating on shares of Rhythm Pharmaceuticals in a report on Wednesday, June 17th. Stifel Nicolaus set a $133.00 price objective on Rhythm Pharmaceuticals in a report on Monday, June 15th. Royal Bank Of Canada boosted their price target on Rhythm Pharmaceuticals from $141.00 to $155.00 and gave the company an "outperform" rating in a report on Wednesday. Canaccord Genuity Group set a $154.00 target price on shares of Rhythm Pharmaceuticals in a research report on Wednesday. Finally, Wells Fargo & Company raised their price objective on shares of Rhythm Pharmaceuticals from $144.00 to $155.00 and gave the company an "overweight" rating in a research note on Monday, June 15th. Fifteen analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $142.38.

Rhythm Pharmaceuticals Price Performance

Shares of RYTM traded up $3.25 during trading hours on Wednesday, hitting $109.03. 603,192 shares of the stock were exchanged, compared to its average volume of 792,156. The firm has a market capitalization of $7.47 billion, a P/E ratio of -34.78 and a beta of 1.92. Rhythm Pharmaceuticals has a fifty-two week low of $74.50 and a fifty-two week high of $122.20. The business has a 50-day moving average of $101.19 and a 200-day moving average of $95.82.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported ($0.73) EPS for the quarter, topping analysts' consensus estimates of ($0.81) by $0.08. The business had revenue of $71.25 million during the quarter, compared to analysts' expectations of $67.66 million. Rhythm Pharmaceuticals had a negative net margin of 93.33% and a negative return on equity of 203.25%. The business's quarterly revenue was up 46.9% on a year-over-year basis. During the same period last year, the company posted ($0.75) earnings per share. As a group, analysts forecast that Rhythm Pharmaceuticals will post -3.08 earnings per share for the current fiscal year.

Insider Activity

In other Rhythm Pharmaceuticals news, Director Lynn A. Tetrault sold 37,000 shares of the business's stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $100.32, for a total transaction of $3,711,840.00. Following the transaction, the director owned 7,000 shares in the company, valued at $702,240. The trade was a 84.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 5.90% of the company's stock.

Institutional Trading of Rhythm Pharmaceuticals

A number of large investors have recently modified their holdings of RYTM. Vanguard Group Inc. raised its position in Rhythm Pharmaceuticals by 24.3% during the 4th quarter. Vanguard Group Inc. now owns 6,210,916 shares of the company's stock valued at $664,816,000 after purchasing an additional 1,214,489 shares in the last quarter. RA Capital Management L.P. raised its holdings in shares of Rhythm Pharmaceuticals by 17.3% in the fourth quarter. RA Capital Management L.P. now owns 6,666,837 shares of the company's stock valued at $713,618,000 after acquiring an additional 985,478 shares in the last quarter. Alliancebernstein L.P. lifted its stake in Rhythm Pharmaceuticals by 1,493.8% in the third quarter. Alliancebernstein L.P. now owns 979,682 shares of the company's stock worth $98,938,000 after acquiring an additional 918,212 shares during the period. Jennison Associates LLC lifted its stake in Rhythm Pharmaceuticals by 123.2% in the fourth quarter. Jennison Associates LLC now owns 918,567 shares of the company's stock worth $98,323,000 after acquiring an additional 507,017 shares during the period. Finally, Bank of America Corp DE lifted its stake in Rhythm Pharmaceuticals by 180.0% in the first quarter. Bank of America Corp DE now owns 628,667 shares of the company's stock worth $54,675,000 after acquiring an additional 404,183 shares during the period.

Key Headlines Impacting Rhythm Pharmaceuticals

Here are the key news stories impacting Rhythm Pharmaceuticals this week:

• Positive Sentiment: Analysts raised their targets: Royal Bank of Canada lifted its price target from $141 to $155 and maintained an “outperform” rating. Citizens JMP raised its target from $155 to $160 and reiterated a “market outperform” rating, implying substantial upside from recent trading levels. Benzinga analyst actions Ticker Report analyst actions
• Positive Sentiment: Quarterly results exceeded expectations: Rhythm reported second-quarter revenue of approximately $71.3 million, up 46.9% year over year and ahead of the $67.7 million consensus estimate. The company’s loss of $0.73 per share was narrower than the expected $0.81 loss. The U.S. launch of IMCIVREE for acquired hypothalamic obesity generated more than 400 patient start forms through June 30. Rhythm second-quarter results
• Positive Sentiment: Promising pipeline data strengthened the growth narrative: Experimental weekly injectable RM-718 produced a mean 11.6% reduction in body mass index after 16 weeks in seven patients with acquired hypothalamic obesity. Although preliminary and based on a small sample, the data suggest potential commercial value beyond current IMCIVREE sales. RM-718 clinical data Reuters RM-718 coverage
• Neutral Sentiment: Chief Executive Officer David Meeker and Chief Financial Officer Hunter Smith are scheduled to participate in fireside chats at three upcoming investor conferences, potentially providing additional updates on commercialization and the pipeline. Upcoming investor conferences
• Negative Sentiment: Rhythm remains unprofitable, reporting a substantial quarterly net loss and negative margins. RM-718 results are also preliminary, with only seven patients studied, leaving clinical, regulatory, and execution risks despite the encouraging early signal.

Rhythm Pharmaceuticals Company Profile

Rhythm Pharmaceuticals, Inc is a clinical‐stage biotechnology company dedicated to developing targeted therapies for rare genetic diseases of obesity and metabolic dysfunction. The company's research focuses on the melanocortin‐4 receptor (MC4R) pathway, which plays a central role in regulating appetite, energy expenditure and body weight. Using proprietary peptide technology, Rhythm aims to provide precision treatments to patients with specific genetic variants that disrupt normal weight regulation.

The company's lead investigational product, setmelanotide, is a selective MC4R agonist designed to restore signaling in patients with deficiencies in genes such as POMC, LEPR and PCSK1.

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