Rhythm Pharma Gets Price-Target Bump Ups To $129 After Oral Obesity Drug Impresses In Phase 2; Retail Appetite Swells

Rhythm Pharmaceuticals received a wave of price target hikes on Wednesday after releasing encouraging Phase 2 results for bivamelagon, its experimental oral treatment for hypothalamic obesity.

Leerink

Leerink bumped its target to $102 from $88, keeping an 'Outperform' rating on the stock. 

The firm updated its estimates following the company's disclosure of Phase 2 data for bivamelagon, which it described as “close to a best-case scenario.” 

Leerink said investor feedback has been highly positive regarding efficacy, with minimal concerns on safety.

Needham

Needham increased its price target to $95 from $72 and kept a 'Buy' rating. 

The firm raised its probability of success (PoS) for the bivamelagon program to 70% from 40% based on the Phase 2 results and lowered its discount rate in its discounted cash flow (DCF) model to 8% from 9.5% to reflect reduced overall risk. 

Needham added that, aside from some manageable exceptions, the tolerability profile for bivamelagon looks better than that of setmelanotide.

Morgan Stanley 

Morgan Stanley lifted its price target to $95 from $80 and maintained an 'Overweight' rating. 

The firm noted that the Phase 2 data indicated BMI reductions above the 10% threshold, in the range of setmelanotide, with an improved profile. 

Morgan Stanley stated that this supports the advancement of bivamelagon into Phase 3 trials, which are expected in the first half of 2026. 

The firm also said early data confirm the potential for bivamelagon to expand or extend Rhythm’s opportunity in hypothalamic obesity.

BofA

BofA raised its price target to $95 from $73 and kept a 'Buy' rating. 

The firm cited the positive topline results for bivamelagon and said the data suggest an efficacy profile similar to setmelanotide, but with more convenient once-daily oral dosing.

Stifel

Stifel raised its target to $123 from $94 and maintained a 'Buy' rating. 

The firm cited the Phase 2 data for bivamelagon and stated the treatment is now “derisked” on efficacy and “mostly derisked” on safety. 

Stifel said Rhythm now has an opportunity to extend the duration of its MC4R franchise beyond 2040.

Wells Fargo

Wells Fargo increased its price target to $129 from $91 and kept an 'Overweight' rating. 

The firm said the Phase 2 data are a “key inflection” for Rhythm’s MC4R franchise and that the stock should “trade up meaningfully.” 

Wells estimates the data adds approximately $35 per share in value and significantly increases the probability of success and durability for Rhythm’s MC4R franchise into the mid-2040s.

On Stocktwits, retail sentiment for Rhythm was ‘extremely bullish’ amid ‘extremely high’ message volume.

Rhythm’s stock has risen 48.2% so far in 2025.

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