Rhythm Pharmaceuticals Inc Receives a Buy from Needham

By Jason Carr

Needham analyst Alan Carr assigned a Buy rating to Rhythm Pharmaceuticals Inc (NASDAQ: RYTM) today and set a price target of $32. The company’s shares opened today at $24.02.

Carr commented:

“Rhythm reported 3Q17 financial results and we spoke w/ mgmt for an update. Enrollment in Phase 3 setmelanotide trial in POMC Deficiency is still expected to be completed by YE17. We assume top-line results in early 2019 (unch) and continue to expect a positive outcome. Mgmt also reiterated guidance for intiation of Phase 3 setmelanotide trial in LepR Deficiency by YE17. Data in a small number of patients with POMC or LepR Deficiency were remarkably strong and are the basis for our enthusiasm for the drug and the stock. We await data from Phase 2 trials in Alstrom Syndrome and POMC Epigenetic/ Heterozygous mutation patients in early 2018. A favorable outcome would add meaningfully to peak sales potential. BUY.”

According to TipRanks.com, Carr is a 4-star analyst with an average return of 6.7% and a 42.7% success rate. Carr covers the Healthcare sector, focusing on stocks such as Biohaven Pharmaceutical Holding Co Ltd, ACADIA Pharmaceuticals Inc, and Ionis Pharmaceuticals Inc.

Currently, the analyst consensus on Rhythm Pharmaceuticals Inc is Moderate Buy and the average price target is $31.67, representing a 31.8% upside.

In a report issued on October 31, Cowen & Co. also assigned a Buy rating to the stock with a $40 price target.

Based on Rhythm Pharmaceuticals Inc’s latest earnings report for the quarter ending June 30, the company posted quarterly revenue of $0 and GAAP net loss of $8.01 million. In comparison, last year the company earned revenue of $0 and had a GAAP net loss of $6.53 million.

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Rhythm Pharmaceuticals, Inc. develops and commercializes peptide therapeutics for the treatment of gastrointestinal (GI) diseases and genetic deficiencies. It focuses on the treatment for Prader-Willi Syndrome (PWS) and Pro-Opiomelanocortin (POMC) deficiency obesity.