Morgan Stanley Cuts Rhythm Pharmaceuticals (NASDAQ:RYTM) Price Target to $136.00

Rhythm Pharmaceuticals (NASDAQ:RYTM) had its price target cut by Morgan Stanley from $150.00 to $136.00 in a research report sent to investors on Tuesday,Benzinga reports. They currently have an overweight rating on the stock.

Several other brokerages have also recently weighed in on RYTM. The Goldman Sachs Group boosted their price target on shares of Rhythm Pharmaceuticals from $141.00 to $157.00 and gave the stock a “buy” rating in a research report on Friday, December 12th. TD Cowen reissued a “buy” rating on shares of Rhythm Pharmaceuticals in a research note on Thursday, December 11th. HC Wainwright reduced their target price on shares of Rhythm Pharmaceuticals from $125.00 to $110.00 and set a “buy” rating on the stock in a report on Monday, March 2nd. Telsey Advisory Group set a $143.00 target price on shares of Rhythm Pharmaceuticals in a research report on Thursday, March 12th. Finally, Jefferies Financial Group reaffirmed a “buy” rating and issued a $125.00 price target on shares of Rhythm Pharmaceuticals in a report on Tuesday, March 3rd. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $131.13.

Rhythm Pharmaceuticals Price Performance

NASDAQ RYTM opened at $90.31 on Tuesday. The stock has a market capitalization of $6.17 billion, a PE ratio of -29.04 and a beta of 2.06. The business has a 50 day simple moving average of $99.31 and a two-hundred day simple moving average of $102.60. Rhythm Pharmaceuticals has a 1-year low of $45.90 and a 1-year high of $122.20.

Rhythm Pharmaceuticals (NASDAQ:RYTM) last issued its quarterly earnings data on Thursday, February 26th. The company reported ($0.73) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.79) by $0.06. The business had revenue of $57.25 million for the quarter, compared to analysts’ expectations of $56.16 million. Rhythm Pharmaceuticals had a negative return on equity of 266.56% and a negative net margin of 103.57%.The company’s revenue for the quarter was up 36.9% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.72) EPS. On average, analysts anticipate that Rhythm Pharmaceuticals will post -4.32 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Hunter C. Smith sold 4,385 shares of the stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $101.26, for a total value of $444,025.10. Following the sale, the chief financial officer owned 110,512 shares of the company’s stock, valued at approximately $11,190,445.12. This represents a 3.82% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Christopher Paul German sold 5,614 shares of the stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $89.56, for a total transaction of $502,789.84. Following the completion of the sale, the chief accounting officer directly owned 160 shares in the company, valued at approximately $14,329.60. This represents a 97.23% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 27,267 shares of company stock valued at $2,719,955. 6.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Rhythm Pharmaceuticals

Large investors have recently made changes to their positions in the company. Xponance LLC lifted its stake in Rhythm Pharmaceuticals by 2.6% in the fourth quarter. Xponance LLC now owns 4,269 shares of the company’s stock worth $457,000 after purchasing an additional 107 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its stake in shares of Rhythm Pharmaceuticals by 4.5% during the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 2,568 shares of the company’s stock worth $259,000 after acquiring an additional 110 shares during the last quarter. Smartleaf Asset Management LLC lifted its stake in shares of Rhythm Pharmaceuticals by 39.5% during the 4th quarter. Smartleaf Asset Management LLC now owns 399 shares of the company’s stock worth $43,000 after acquiring an additional 113 shares during the last quarter. Captrust Financial Advisors boosted its holdings in Rhythm Pharmaceuticals by 0.7% during the 2nd quarter. Captrust Financial Advisors now owns 17,471 shares of the company’s stock valued at $1,104,000 after acquiring an additional 114 shares during the period. Finally, GAMMA Investing LLC grew its position in Rhythm Pharmaceuticals by 48.6% in the 4th quarter. GAMMA Investing LLC now owns 361 shares of the company’s stock valued at $39,000 after acquiring an additional 118 shares during the last quarter.

Rhythm Pharmaceuticals News Summary

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

• Positive Sentiment: FDA approval for a new indication — The FDA approved IMCIVREE® (setmelanotide) for patients with acquired hypothalamic obesity, making it the first and only approved therapy for this rare, difficult‑to‑treat condition; this expands the commercial opportunity and is the primary catalyst for the stock rally today. FDA Approval Release
• Positive Sentiment: Some broker price targets remain elevated — An American Banking News aggregation shows broker price targets (one cited at $133.19), which supports upside narratives among buy‑side holders. Broker PT Coverage
• Neutral Sentiment: HC Wainwright trims price target but keeps a Buy — HC Wainwright lowered its PT to $100 (from $110) and continues to rate RYTM a Buy, which tempers the bullish view though still implying upside from current levels. Coverage Note
• Neutral Sentiment: Valuation commentary after share weakness — Coverage pieces are reassessing valuation given recent volatility and long‑term returns; useful context for investors thinking about entry points. Valuation Article
• Negative Sentiment: Late‑stage trial failure for a lead indication — Rhythm reported a late‑stage weight‑loss trial setback for IMCIVREE in certain rare obesity populations, a development that previously drove shares lower and raises questions about broader label expansion and near‑term upside. Trial Failure Report
• Negative Sentiment: Multiple firms issue pessimistic forecasts / lower expectations — Bank of America and RBC published negative outlooks, and Citizens JMP and Needham also lowered expectations; these analyst moves increase downward pressure and suggest elevated near‑term volatility. Bank of America Forecast RBC Forecast Citizens JMP Needham
• Negative Sentiment: HC Wainwright lowered near‑term EPS estimate — The firm reduced its Q3 2027 EPS forecast (to $0.33 from $0.42), signaling tempered near‑term revenue/earnings visibility despite the approval and ongoing commercialization work.

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.