Rhythm Pharmaceuticals, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Tazeen Ahmad from Bank of America Securities maintained a Buy rating on the stock and has a $122.00 price target.
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Tazeen Ahmad has given his Buy rating due to a combination of factors that highlight Rhythm Pharmaceuticals’ strong commercial preparation and promising market potential for their treatment of acquired hypothalamic obesity (aHO). The company is leveraging its previous experience with Bardet-Biedl Syndrome (BBS) to ensure a successful launch, utilizing established relationships with key opinion leaders and endocrinology clinics. Additionally, Rhythm Pharmaceuticals has been proactive in building disease and drug awareness through their medical science liaisons and has identified a significant patient population to target initially.
Furthermore, the positive phase 3 data for setmelanotide, the drug intended for aHO treatment, has been well-received by endocrinologists, who see it as a differentiated and effective option compared to existing treatments. The company’s strategic scaling of their commercial salesforce and patient support teams, alongside a virtual disease education campaign, underscores their commitment to maximizing the drug’s uptake. Moreover, the development of next-generation MC4R assets suggests a robust pipeline that could sustain long-term growth. These factors collectively contribute to the optimistic outlook and justify the Buy rating with a price objective of $122.
In another report released yesterday, Goldman Sachs also maintained a Buy rating on the stock with a $138.00 price target.