Royal Bank Of Canada Issues Positive Forecast for Rhythm Pharmaceuticals (NASDAQ:RYTM) Stock Price

Key Points

• Royal Bank of Canada raised Rhythm Pharmaceuticals’ price target to $155 from $141 and maintained an “outperform” rating, implying roughly 41% upside from the prior close. Analysts broadly remain positive, with a consensus “Moderate Buy” rating and $141.62 average target.
• Rhythm’s latest quarterly results beat expectations: the company reported a $0.73 per-share loss versus the $0.81 estimate, while revenue rose 46.9% year over year to $71.25 million, exceeding forecasts.
• Shares climbed 3.6% to $109.59, supported by optimism around IMCIVREE sales and pipeline progress, including early data showing an 11.6% average BMI reduction for experimental drug RM-718 after 16 weeks.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) had its target price lifted by equities researchers at Royal Bank Of Canada from $141.00 to $155.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Royal Bank Of Canada's target price would suggest a potential upside of 41.43% from the stock's previous close.

Other analysts have also issued reports about the stock. TD Cowen reaffirmed a "buy" rating on shares of Rhythm Pharmaceuticals in a research report on Wednesday, June 17th. Citizens Jmp boosted their price objective on shares of Rhythm Pharmaceuticals from $155.00 to $160.00 and gave the stock a "market outperform" rating in a research note on Wednesday. Wall Street Zen upgraded shares of Rhythm Pharmaceuticals from a "sell" rating to a "hold" rating in a research note on Saturday, May 9th. National Bank Financial set a $160.00 target price on shares of Rhythm Pharmaceuticals in a research note on Wednesday. Finally, Canaccord Genuity Group set a $154.00 target price on shares of Rhythm Pharmaceuticals in a research note on Wednesday. Fifteen investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $141.62.

Rhythm Pharmaceuticals Trading Up 3.6%

Shares of NASDAQ:RYTM traded up $3.81 during trading on Wednesday, hitting $109.59. 427,182 shares of the company were exchanged, compared to its average volume of 791,045. Rhythm Pharmaceuticals has a fifty-two week low of $74.50 and a fifty-two week high of $122.20. The stock has a market cap of $7.51 billion, a price-to-earnings ratio of -34.99 and a beta of 1.92. The firm has a fifty day moving average price of $101.19 and a two-hundred day moving average price of $95.82.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported ($0.73) EPS for the quarter, beating the consensus estimate of ($0.81) by $0.08. Rhythm Pharmaceuticals had a negative return on equity of 203.25% and a negative net margin of 93.33%.The company had revenue of $71.25 million during the quarter, compared to the consensus estimate of $67.66 million. During the same quarter in the prior year, the firm posted ($0.75) EPS. The firm's revenue for the quarter was up 46.9% compared to the same quarter last year. As a group, research analysts predict that Rhythm Pharmaceuticals will post -3.08 EPS for the current year.

Insider Activity at Rhythm Pharmaceuticals

In related news, Director Lynn A. Tetrault sold 37,000 shares of Rhythm Pharmaceuticals stock in a transaction dated 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 completion of the sale, the director owned 7,000 shares of the company's stock, valued at approximately $702,240. The trade was a 84.09% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 5.90% 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 company. AQR Capital Management LLC increased its stake in shares of Rhythm Pharmaceuticals by 148.2% during the first quarter. AQR Capital Management LLC now owns 39,363 shares of the company's stock worth $2,085,000 after purchasing an additional 23,506 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Rhythm Pharmaceuticals by 6.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,282 shares of the company's stock worth $1,874,000 after buying an additional 2,126 shares during the period. Prudential Financial Inc. increased its position in Rhythm Pharmaceuticals by 62.9% during the 2nd quarter. Prudential Financial Inc. now owns 7,095 shares of the company's stock worth $423,000 after buying an additional 2,740 shares during the period. Qube Research & Technologies Ltd lifted its holdings in shares of Rhythm Pharmaceuticals by 11.2% during the second quarter. Qube Research & Technologies Ltd now owns 240,345 shares of the company's stock worth $15,187,000 after buying an additional 24,152 shares in the last quarter. Finally, Sei Investments Co. lifted its holdings in shares of Rhythm Pharmaceuticals by 10.0% during the second quarter. Sei Investments Co. now owns 33,145 shares of the company's stock worth $2,095,000 after buying an additional 3,004 shares in the last quarter.

Key Headlines Impacting Rhythm Pharmaceuticals

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

• Positive Sentiment: Price target raised: Citizens JMP increased its target for RYTM from $155 to $160 and maintained a “market outperform” rating, implying approximately 47.7% upside from the referenced $108.32 price. The upgrade reinforces confidence in Rhythm’s commercial growth and pipeline. TickerReport analyst price target article
• Positive Sentiment: Quarterly results exceeded expectations: Rhythm reported a second-quarter loss of $0.73 per share, better than the $0.81 consensus estimate, while revenue of approximately $71.3 million surpassed estimates of $67.7 million and increased 46.9% year over year. The results suggest continued momentum for IMCIVREE sales despite the company remaining unprofitable. Rhythm Pharmaceuticals second-quarter results
• Positive Sentiment: IMCIVREE launch and pipeline data provided additional support: The U.S. launch for acquired hypothalamic obesity generated more than 400 patient start forms through June 30. Separately, the experimental weekly injectable RM-718 produced an 11.6% mean BMI reduction after 16 weeks in seven patients, an encouraging early efficacy signal for a rare, difficult-to-treat condition. Reuters RM-718 clinical data article

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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