Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Why Goldman Sachs Raised Its Price Target On This Biotech Stock By Nearly 5X

Published 08/08/2022, 16:33
Updated 08/08/2022, 17:10
© Reuters.  Why Goldman Sachs Raised Its Price Target On This Biotech Stock By Nearly 5X

© Reuters. Why Goldman Sachs Raised Its Price Target On This Biotech Stock By Nearly 5X

The initial phase II data in patients with hypothalamic obesity (HO) has transformed the opportunity for Rhythm Pharmaceuticals Inc’s (NASDAQ: RYTM) Imcivree, according to Goldman Sachs (NYSE:GS).

The Rhythm Pharmaceuticals Analyst: Corinne Jenkins upgraded Rhythm Pharmaceuticals from Neutral to Buy and raised the price target from $6 to $28.

The Rhythm Pharmaceuticals Takeaways: The Phase II data for Imcivree suggests “a high probability of clinical success” in hypothalamic obesity, which represents “a meaningfully higher peak sales opportunity as compared to other indications where Imcivree is in development, Jenkins said in an upgrade note.

Check out other analyst stock ratings.

“Acknowledging that the stock is +320% since the data were released, reflecting the de-risking of HO and investors’ positive view on the indication, we still see additional upside to the stock from here, albeit the path may not be linear,” the analyst said.

“We look for RYTM to prioritize Ph3 studies of Imcivree in this population (planned initiation: 1H23) and anticipate a relatively small, placebo-controlled study based on the effect size observed in the Ph2. Pending a positive Ph3 trial, we estimate peak risk-adjusted sales in HO of $1.6B, adjusted by a 75% PoS,” she further mentioned.

RYTM Price Action: Shares of Rhythm Pharmaceuticals were trading 8.94% higher at $22.05 late Monday morning.

Latest Ratings for RYTM

DateFirmActionFromTo
Mar 2022Canaccord GenuityMaintainsBuy
Mar 2022NeedhamMaintainsBuy
Feb 2022NeedhamMaintainsBuy
View More Analyst Ratings for RYTM

View the Latest Analyst Ratings

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read at Benzinga

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.