RBC Capital reiterates Rhythm Pharmaceuticals stock rating on Q3 beat

RBC Capital has reaffirmed an "Outperform" rating and set a $159.00 price target for Rhythm Pharmaceuticals (NASDAQ:RYTM) following the company's third-quarter earnings report. The firm reported EPS results, with Imcivree revenue reaching $92.1 million, surpassing the $85 million consensus estimate. This success is attributed to an impressive gross profit margin of 89%.

Six analysts have revised their earnings forecasts upward for the upcoming period, one of eleven ProTips accessible to subscribers. The company added 300 new hypothalamic obesity patients this quarter, up from 250 in the previous quarter. Japan and ex-U.S. launches are underway. Rhythm Pharmaceuticals is set to commence a Phase III trial for Prader-Willi syndrome with next-generation bivamelagon in 2027, which avoids hyperpigmentation adverse events and has intellectual property protection through the 2040s.

RBC Capital remains bullish on the potential of hypothalamic obesity to drive Imcivree sales to over $2 billion worldwide by 2030. The company's current market capitalization is $5.93 billion, with revenue growing by 54% year-over-year. Investors seeking further insights can access RYTM's Pro Research Report on InvestingPro for detailed Fair Value analysis and financial health scores.

However, in other recent news, Rhythm Pharmaceuticals reported a third-quarter 2026 result that beat Wall Street expectations, posting an adjusted loss of $0.61 per share compared to the projected loss of $0.71 per share. Despite these positive results, the stock saw a decline in premarket trading as investors considered the company's spending plans and financing strategies.