In recent developments on Wall Street, Rhythm Pharmaceuticals (NASDAQ:RYTM) received an Equal-Weight recommendation from Morgan Stanley on Tuesday. The investment bank has set a one-year price target for the company at $38.99, which suggests a potential 64.36% increase from Rhythm's recent closing price of $23.72.
The firm's projected annual revenue is estimated at $63 million, marking a significant 44.96% increase. This aligns with InvestingPro data which shows a substantial 226.39% revenue growth for Rhythm Pharmaceuticals in the last twelve months, ending Q2 of 2023. The non-GAAP EPS is expected to be -3.14, which is in line with the Basic EPS of -3.29 USD as per InvestingPro's data.
As of Tuesday, a total of 267 funds or institutions hold positions in Rhythm Pharmaceuticals, marking a 19.73% quarterly increase. These institutions own a collective 77,249K shares with an average portfolio weight for RYTM at a decreased rate of 0.13%.
The bullish put/call ratio for RYTM stands at 0.18, indicating more call options being bought, which is usually a bullish sign. Among the major shareholders are Primecap Management with a 14.09% stake and an 8.34% increase in shares, Baker Bros. Advisors holding 11.03%, PRIMECAP Odyssey Aggressive Growth Fund with 9.15%, and Goldman Sachs Group (NYSE:GS) possessing an 8.80% stake with a portfolio allocation increase by 193.39%.
On the other hand, Ra Capital Management has decreased its portfolio allocation in RYTM by 20.67%. It is worth noting that Rhythm Pharmaceuticals is currently in the process of developing setmelanotide, a drug aimed at restoring impaired pathway function in rare genetic diseases of obesity.
Taking into account InvestingPro Tips, Rhythm Pharmaceuticals holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations. This indicates a solid financial position which could be beneficial for potential investors. However, it's worth noting that analysts do not anticipate the company will be profitable this year. Moreover, the company's stock price movements are quite volatile, indicating a certain level of risk involved. For more insightful tips like these, consider checking out InvestingPro which offers numerous additional tips to guide your investment decisions.
In conclusion, Rhythm Pharmaceuticals seems to be on a growth trajectory with a substantial increase in revenue and a solid financial position. However, potential investors should be aware of the company's volatility and the current lack of profitability. With a market cap of 1410M USD, Rhythm Pharmaceuticals is a significant player in the market and its future developments are worth keeping an eye on.
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