RBC Initiates Coverage on Rhythm Pharmaceuticals with Outperform Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy RYTM?
Source: Benzinga
- Market Opportunity Analysis: RBC Capital Markets highlighted that Rhythm Pharmaceuticals' successful Phase 3 trial in 2025 led to a market cap increase of approximately $3.5 billion, showcasing its potential in the rare genetic obesity market.
- Clinical Trial Results: In April 2025, the results from the TRANSCEND trial revealed that setmelanotide achieved a statistically significant 19.8% reduction in BMI among adult and pediatric patients, indicating its effectiveness in treating hypothalamic obesity.
- Sales Growth Expectations: In Q3, Imcivree's sales reached $51.3 million, with analysts projecting that by 2030, revenue could exceed $2 billion as the market for HO patients expands, reflecting strong market demand.
- FDA Review Progress: The FDA extended the review period for setmelanotide by three months to March 20, 2026, and analysts believe Rhythm is well-positioned for future growth, particularly with its development for Prader-Willi syndrome.
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Analyst Views on RYTM
Wall Street analysts forecast RYTM stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 101.300
Low
123.00
Averages
140.62
High
167.00
Current: 101.300
Low
123.00
Averages
140.62
High
167.00
About RYTM
Rhythm Pharmaceuticals, Inc. is a commercial-stage biopharmaceutical company. The Company is focused on advancing its melanocortin-4 receptor (MC4R) agonists, including its lead asset, IMCIVREE, as a precision medicine designed to treat hyperphagia and severe obesity caused by rare MC4R pathway diseases. IMCIVREE is approved by the Food and Drug Administration (FDA) for chronic weight management in adult and pediatric patients six years of age and older with monogenic or syndromic obesity due to proopiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1 (PCSK1) or leptin receptor (LEPR) deficiency as determined by an FDA-approved test demonstrating variants in POMC, PCSK1, or LEPR genes that are interpreted as pathogenic, likely pathogenic, or of uncertain significance (VUS). In addition to setmelanotide, it has two earlier-stage investigational MC4R agonists in clinical development, RM-718, designed for weekly administration, and bivamelagon, an oral small molecule.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
RBC Initiates Coverage on Rhythm Pharmaceuticals with Outperform Rating
- Market Opportunity Analysis: RBC Capital Markets highlighted that Rhythm Pharmaceuticals' successful Phase 3 trial in 2025 led to a market cap increase of approximately $3.5 billion, showcasing its potential in the rare genetic obesity market.
- Clinical Trial Results: In April 2025, the results from the TRANSCEND trial revealed that setmelanotide achieved a statistically significant 19.8% reduction in BMI among adult and pediatric patients, indicating its effectiveness in treating hypothalamic obesity.
- Sales Growth Expectations: In Q3, Imcivree's sales reached $51.3 million, with analysts projecting that by 2030, revenue could exceed $2 billion as the market for HO patients expands, reflecting strong market demand.
- FDA Review Progress: The FDA extended the review period for setmelanotide by three months to March 20, 2026, and analysts believe Rhythm is well-positioned for future growth, particularly with its development for Prader-Willi syndrome.
See More
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- CIBC Rating Upgrade: Barclays upgrades CIBC from underweight to overweight, highlighting the bank's progress over the past two years with ROE expansion and consistent earnings performance, suggesting significant growth potential and investment appeal in the Canadian market.
- Credo Technology Buy Rating: Goldman Sachs initiates coverage of Credo Technology with a buy rating and a 12-month price target of $165, indicating a favorable risk/reward profile and confidence in the company's future growth.
- Chewy Rating Upgrade: Raymond James upgrades Chewy from market perform to outperform, noting an attractive EV/EBITDA of approximately 8x, combined with topline and margin opportunities in 2026, highlighting the stock's appeal.
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Three Stocks Set to Outperform the Market in 2026
- Alphabet Cloud Growth: Alphabet's cloud business had an annual revenue run rate of approximately $70 billion at the end of 2025, with a backlog growth exceeding 100% year-over-year to $240 billion in Q4, which is expected to significantly enhance the company's profitability in 2026 and solidify its leadership in the AI sector.
- BeOne Drug Development Progress: BeOne Medicines plans to announce Phase 3 study results for Brukinsa in combination with rituximab in the first half of 2026, and is expected to gain U.S. regulatory approval for sonrotoclax, further enhancing its competitiveness in the blood cancer treatment market.
- Rhythm Drug Approval Outlook: Rhythm Pharmaceuticals' Imcivree is anticipated to receive FDA approval for treating acquired hypothalamic obesity by March 20, 2026, which would significantly expand its market potential as this condition affects more patients than the combined total of its three existing indications.
- Multiple Clinical Trial Data Releases: Rhythm also plans to report top-line data from a Phase 3 study evaluating Imcivree in four other genetic diseases in Q1 2026 and disclose results from an exploratory Phase 2 study on Prader-Willi syndrome in the first half of the year, further boosting investor confidence.
See More
Rhythm Pharmaceuticals Stock Soars with Significant Growth Potential
- Significant Market Potential: Rhythm Pharmaceuticals, with a market cap of only $6.8 billion, has seen its stock price soar over the past 12 months, surpassing both Alphabet and Nvidia, indicating strong market performance and growing investor interest.
- Notable Sales Growth: The company's sole approved drug, Imcivree, achieved sales of $194 million in 2025, reflecting a year-over-year increase of approximately 50%, highlighting the rapid growth in demand for treatments in the rare disease sector.
- Clinical Trial Advancements: Rhythm plans to advance its oral MC4R agonist, bivamelagon, into Phase 3 clinical testing in 2026, while also conducting Phase 1 testing for another MC4R agonist, RM-718, showcasing the diversity and potential of its R&D pipeline.
- FDA Approval Catalyst: The FDA is expected to make a decision on Imcivree's application for treating acquired hypothalamic obesity on March 20, 2026, which could significantly enhance Rhythm's market opportunities, impacting treatment options for approximately 20,000 patients in the U.S.
See More
Rhythm Pharmaceuticals: A Hidden Growth Stock Soaring
- Significant Market Potential: Rhythm Pharmaceuticals has a market cap of $6.8 billion, and despite its relatively small size, its stock has outperformed both Alphabet and Nvidia over the past 12 months, indicating strong market performance and investor confidence.
- Notable Sales Growth: The company's sole approved drug, Imcivree, achieved sales of $194 million in 2025, reflecting a year-over-year increase of approximately 50%, highlighting the growing market demand in the rare genetic obesity treatment sector.
- Promising Clinical Trials: Rhythm expects to advance its oral MC4R agonist, bivamelagon, into Phase 3 clinical testing in 2026, alongside another candidate, RM-718, in Phase 1 testing, showcasing the diversity of its pipeline and potential for market expansion.
- FDA Approval Catalyst: The anticipated FDA approval for Imcivree in treating acquired hypothalamic obesity on March 20, 2026, could potentially benefit over 36,000 patients across the U.S., Europe, and Japan, significantly enhancing the company's market outlook and profitability prospects.
See More
Rhythm Pharmaceuticals Reports $194M in 2025 IMCIVREE Sales
- Significant Sales Growth: Rhythm Pharmaceuticals anticipates approximately $194 million in net product revenues from global sales of IMCIVREE® in 2025, representing a 50% increase from 2024, indicating strong market demand in the rare neuroendocrine disease sector.
- Quarterly Performance Boost: The estimated sales for Q4 2025 are around $57 million, reflecting an 11% increase from Q3 2025, showcasing sustained demand and patient acceptance for IMCIVREE in both U.S. and international markets.
- FDA Approval Progress: The company plans to submit a supplemental NDA for IMCIVREE for acquired hypothalamic obesity to the FDA by March 20, 2026, which, if approved, will further expand its market reach and address patient needs.
- Clinical Trial Data Release: Topline data from a 12-patient Japanese cohort in the Phase 3 trial is expected to be announced in Q1 2026, providing crucial support for the global promotion of IMCIVREE.
See More
RBC Initiates Coverage on Rhythm Pharmaceuticals with Outperform Rating
- Market Opportunity Analysis: RBC Capital Markets highlighted that Rhythm Pharmaceuticals' successful Phase 3 trial in 2025 led to a market cap increase of approximately $3.5 billion, showcasing its potential in the rare genetic obesity market.
- Clinical Trial Results: In April 2025, the results from the TRANSCEND trial revealed that setmelanotide achieved a statistically significant 19.8% reduction in BMI among adult and pediatric patients, indicating its effectiveness in treating hypothalamic obesity.
- Sales Growth Expectations: In Q3, Imcivree's sales reached $51.3 million, with analysts projecting that by 2030, revenue could exceed $2 billion as the market for HO patients expands, reflecting strong market demand.
- FDA Review Progress: The FDA extended the review period for setmelanotide by three months to March 20, 2026, and analysts believe Rhythm is well-positioned for future growth, particularly with its development for Prader-Willi syndrome.
See More
Latest Rating Changes on Wall Street
- Nvidia Outlook Positive: Oppenheimer reiterates its outperform rating on Nvidia, anticipating sustained outsized growth in high-performance gaming, datacenter/AI, and autonomous driving, indicating strong market demand and future profitability potential.
- CIBC Rating Upgrade: Barclays upgrades CIBC from underweight to overweight, highlighting the bank's progress over the past two years with ROE expansion and consistent earnings performance, suggesting significant growth potential and investment appeal in the Canadian market.
- Credo Technology Buy Rating: Goldman Sachs initiates coverage of Credo Technology with a buy rating and a 12-month price target of $165, indicating a favorable risk/reward profile and confidence in the company's future growth.
- Chewy Rating Upgrade: Raymond James upgrades Chewy from market perform to outperform, noting an attractive EV/EBITDA of approximately 8x, combined with topline and margin opportunities in 2026, highlighting the stock's appeal.
See More
Three Stocks Set to Outperform the Market in 2026
- Alphabet Cloud Growth: Alphabet's cloud business had an annual revenue run rate of approximately $70 billion at the end of 2025, with a backlog growth exceeding 100% year-over-year to $240 billion in Q4, which is expected to significantly enhance the company's profitability in 2026 and solidify its leadership in the AI sector.
- BeOne Drug Development Progress: BeOne Medicines plans to announce Phase 3 study results for Brukinsa in combination with rituximab in the first half of 2026, and is expected to gain U.S. regulatory approval for sonrotoclax, further enhancing its competitiveness in the blood cancer treatment market.
- Rhythm Drug Approval Outlook: Rhythm Pharmaceuticals' Imcivree is anticipated to receive FDA approval for treating acquired hypothalamic obesity by March 20, 2026, which would significantly expand its market potential as this condition affects more patients than the combined total of its three existing indications.
- Multiple Clinical Trial Data Releases: Rhythm also plans to report top-line data from a Phase 3 study evaluating Imcivree in four other genetic diseases in Q1 2026 and disclose results from an exploratory Phase 2 study on Prader-Willi syndrome in the first half of the year, further boosting investor confidence.
See More
Rhythm Pharmaceuticals Stock Soars with Significant Growth Potential
- Significant Market Potential: Rhythm Pharmaceuticals, with a market cap of only $6.8 billion, has seen its stock price soar over the past 12 months, surpassing both Alphabet and Nvidia, indicating strong market performance and growing investor interest.
- Notable Sales Growth: The company's sole approved drug, Imcivree, achieved sales of $194 million in 2025, reflecting a year-over-year increase of approximately 50%, highlighting the rapid growth in demand for treatments in the rare disease sector.
- Clinical Trial Advancements: Rhythm plans to advance its oral MC4R agonist, bivamelagon, into Phase 3 clinical testing in 2026, while also conducting Phase 1 testing for another MC4R agonist, RM-718, showcasing the diversity and potential of its R&D pipeline.
- FDA Approval Catalyst: The FDA is expected to make a decision on Imcivree's application for treating acquired hypothalamic obesity on March 20, 2026, which could significantly enhance Rhythm's market opportunities, impacting treatment options for approximately 20,000 patients in the U.S.
See More
Rhythm Pharmaceuticals: A Hidden Growth Stock Soaring
- Significant Market Potential: Rhythm Pharmaceuticals has a market cap of $6.8 billion, and despite its relatively small size, its stock has outperformed both Alphabet and Nvidia over the past 12 months, indicating strong market performance and investor confidence.
- Notable Sales Growth: The company's sole approved drug, Imcivree, achieved sales of $194 million in 2025, reflecting a year-over-year increase of approximately 50%, highlighting the growing market demand in the rare genetic obesity treatment sector.
- Promising Clinical Trials: Rhythm expects to advance its oral MC4R agonist, bivamelagon, into Phase 3 clinical testing in 2026, alongside another candidate, RM-718, in Phase 1 testing, showcasing the diversity of its pipeline and potential for market expansion.
- FDA Approval Catalyst: The anticipated FDA approval for Imcivree in treating acquired hypothalamic obesity on March 20, 2026, could potentially benefit over 36,000 patients across the U.S., Europe, and Japan, significantly enhancing the company's market outlook and profitability prospects.
See More
Rhythm Pharmaceuticals Reports $194M in 2025 IMCIVREE Sales
- Significant Sales Growth: Rhythm Pharmaceuticals anticipates approximately $194 million in net product revenues from global sales of IMCIVREE® in 2025, representing a 50% increase from 2024, indicating strong market demand in the rare neuroendocrine disease sector.
- Quarterly Performance Boost: The estimated sales for Q4 2025 are around $57 million, reflecting an 11% increase from Q3 2025, showcasing sustained demand and patient acceptance for IMCIVREE in both U.S. and international markets.
- FDA Approval Progress: The company plans to submit a supplemental NDA for IMCIVREE for acquired hypothalamic obesity to the FDA by March 20, 2026, which, if approved, will further expand its market reach and address patient needs.
- Clinical Trial Data Release: Topline data from a 12-patient Japanese cohort in the Phase 3 trial is expected to be announced in Q1 2026, providing crucial support for the global promotion of IMCIVREE.
See More
