Rhythm Pharmaceuticals (NASDAQ:RYTM) Price Target Raised to $137.00 at Royal Bank Of Canada

Key Points

• Royal Bank of Canada raised its price target on Rhythm to $137 and kept an "outperform" rating, implying roughly a 45% upside, while the analyst consensus remains a "Moderate Buy" with a target near $131.63.
• Rhythm's Q1 results topped estimates with $60.11M in product revenue and an EPS loss of $0.83, and the company reported early commercial traction for IMCIVREE (>150 patient start forms and European approval) supporting multi‑region growth potential.
• Despite sales momentum, profitability remains a concern with a negative net margin of about 103.6% and very negative ROE; insiders sold shares recently even as major institutions (RA Capital, Vanguard, State Street) materially increased positions.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) had its target price raised by equities research analysts at Royal Bank Of Canada from $136.00 to $137.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Royal Bank Of Canada's target price would indicate a potential upside of 45.26% from the stock's current price.

Other research analysts have also issued reports about the stock. Guggenheim raised their price target on shares of Rhythm Pharmaceuticals from $140.00 to $143.00 and gave the company a "buy" rating in a research report on Friday, February 27th. Morgan Stanley lowered their price objective on shares of Rhythm Pharmaceuticals from $150.00 to $136.00 and set an "overweight" rating on the stock in a research report on Tuesday, March 17th. Bank of America lowered their price objective on shares of Rhythm Pharmaceuticals from $145.00 to $139.00 and set a "buy" rating on the stock in a research report on Tuesday, March 17th. Needham & Company LLC lowered their price objective on shares of Rhythm Pharmaceuticals from $139.00 to $130.00 and set a "buy" rating on the stock in a research report on Tuesday, March 17th. Finally, Canaccord Genuity Group reduced their target price on shares of Rhythm Pharmaceuticals from $141.00 to $140.00 and set a "buy" rating for the company in a research note on Monday, March 2nd. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $131.63.

Rhythm Pharmaceuticals Trading Up 2.2%

Shares of RYTM traded up $2.01 during trading hours on Wednesday, reaching $94.32. 425,515 shares of the stock traded hands, compared to its average volume of 783,245. The stock has a fifty day simple moving average of $87.97 and a 200 day simple moving average of $99.44. Rhythm Pharmaceuticals has a 52 week low of $55.31 and a 52 week high of $122.20. The company has a market cap of $6.46 billion, a price-to-earnings ratio of -30.33 and a beta of 1.94.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported ($0.83) earnings per share for the quarter, beating analysts' consensus estimates of ($0.86) by $0.03. Rhythm Pharmaceuticals had a negative net margin of 103.57% and a negative return on equity of 266.56%. The company had revenue of $60.11 million for the quarter, compared to analyst estimates of $55.78 million. During the same period last year, the firm earned ($0.81) earnings per share. The firm's revenue was up 83.8% on a year-over-year basis. Analysts predict that Rhythm Pharmaceuticals will post -3.08 earnings per share for the current fiscal year.

Insider Activity

In other Rhythm Pharmaceuticals news, CAO Christopher Paul German sold 5,614 shares of the stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $89.56, for a total value of $502,789.84. Following the sale, the chief accounting officer directly owned 160 shares in the company, valued at $14,329.60. This represents a 97.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Hunter C. Smith sold 4,385 shares of the company's stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $101.26, for a total transaction of $444,025.10. Following the completion of the sale, the chief financial officer directly owned 110,512 shares of the company's stock, valued at $11,190,445.12. This trade represents a 3.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 24,020 shares of company stock valued at $2,375,805 in the last quarter. Corporate insiders own 6.10% of the company's stock.

Institutional Investors Weigh In On Rhythm Pharmaceuticals

A number of institutional investors have recently made changes to their positions in the business. RA Capital Management L.P. boosted its stake in shares of Rhythm Pharmaceuticals by 17.3% in the 4th quarter. RA Capital Management L.P. now owns 6,666,837 shares of the company's stock valued at $713,618,000 after purchasing an additional 985,478 shares in the last quarter. Vanguard Group Inc. boosted its stake in shares of Rhythm Pharmaceuticals by 24.3% in 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. State Street Corp boosted its stake in shares of Rhythm Pharmaceuticals by 8.4% in the 4th quarter. State Street Corp now owns 2,198,615 shares of the company's stock valued at $235,340,000 after purchasing an additional 169,964 shares in the last quarter. Federated Hermes Inc. boosted its stake in shares of Rhythm Pharmaceuticals by 2.5% in the 3rd quarter. Federated Hermes Inc. now owns 1,727,885 shares of the company's stock valued at $174,499,000 after purchasing an additional 41,391 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD boosted its stake in shares of Rhythm Pharmaceuticals by 11.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,560,847 shares of the company's stock valued at $167,074,000 after purchasing an additional 160,950 shares in the last quarter.

Key Rhythm Pharmaceuticals News

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

• Positive Sentiment: Wells Fargo raised its price target slightly to $144 and kept an "overweight" rating, signaling continued analyst confidence and implying material upside from current levels. Benzinga
• Positive Sentiment: Company reported Q1 results that topped revenue and EPS consensus: $60.1M in net product revenue (IMCIVREE) and a small EPS beat (loss of $0.83 vs. est. -$0.86), showing early commercial traction and higher-than-expected sales growth. Press Release
• Positive Sentiment: Commercial and regulatory milestones: U.S. launch into acquired hypothalamic obesity with >150 patient start forms in six weeks, European Commission marketing authorization for acquired hypothalamic obesity, and an ongoing Japanese review — all support multi-region growth potential for IMCIVREE. Press Release
• Positive Sentiment: New clinical data presentations at the Pediatric Endocrine Society increase scientific visibility for IMCIVREE in acquired hypothalamic obesity, which can support uptake and payer discussions. Business Insider
• Neutral Sentiment: CEO David Meeker will appear at the Bank of America Global Healthcare Conference (May 13), offering investors a forum for updated commercial guidance and Q&A that could move sentiment depending on commentary. GlobeNewswire
• Neutral Sentiment: Market and analyst coverage pieces are highlighting IMCIVREE's long-term potential and shifting narrative as early commercial data arrive; these stories can amplify investor interest but are commentary rather than new fundamentals. Yahoo
• Negative Sentiment: Profitability remains negative: Rhythm still reports negative net margin (~103.6%) and very negative ROE, reflecting early commercial-stage economics and R&D spend — a reminder that cash burn and margin improvement are watch items. MarketBeat

About Rhythm Pharmaceuticals

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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