Rhythm Pharmaceuticals Stock: A Deep Dive Into Analyst Perspectives (15 Ratings)

In the preceding three months, 15 analysts have released ratings for Rhythm Pharmaceuticals RYTM, presenting a wide array of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $73.2, a high estimate of $92.00, and a low estimate of $64.00. This current average reflects an increase of 5.32% from the previous average price target of $69.50.

Breaking Down Analyst Ratings: A Detailed Examination

The standing of Rhythm Pharmaceuticals among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Rhythm Pharmaceuticals. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Rhythm Pharmaceuticals compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Rhythm Pharmaceuticals's stock. This examination reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Rhythm Pharmaceuticals's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Rhythm Pharmaceuticals analyst ratings.

Discovering Rhythm Pharmaceuticals: A Closer Look

Rhythm Pharmaceuticals Inc is a commercial-stage biopharmaceutical company. It is engaged in the development and commercialization of therapies for patients with rare diseases. The company is focused on its melanocortin-4 receptor (MC4R) agonists, including its lead asset, IMCIVREE (setmelanotide), as a precision medicine designed to treat hyperphagia and severe obesity caused by rare MC4R pathway diseases. Geographically the company generates its revenue from the United States and internationally with the majority being generated from the United States.

A Deep Dive into Rhythm Pharmaceuticals's Financials

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3M period, Rhythm Pharmaceuticals showcased positive performance, achieving a revenue growth rate of 72.61% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: Rhythm Pharmaceuticals's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -112.99% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Rhythm Pharmaceuticals's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -286.92%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -12.51%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Rhythm Pharmaceuticals's debt-to-equity ratio is below the industry average at 0.18, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.