Analysts See Major Upside for This Drug Stock

The stock's consensus 12-month price target sits in uncharted territory for RYTM

by Lillian Currens

Published on Jul 8, 2019 at 12:43 PM

The shares of Rhythm Pharmaceuticals Inc (NASDAQ:RYTM) are getting a boost today, after Canaccord Genuity initiated coverage on the drugmaker with a "buy" rating and a $35 price target -- a more than 60% premium to the stock's current perch. The rating comes just weeks after the stock hit a 14-month low of $20.64, and has RYTM on track to close above its 10-day moving average for the first time since late May.

In fact, the stock, which is now trading up 3.5% at $21.84, hit a two-week high earlier before easing back. Looking further back, RYTM has struggled on the charts, still 19.1% lower year-to-date. While the security has managed to find its footing atop the $21 region, the $22 area has acted as resistance on the charts of late. 

Three analysts agree with Canaccord's "buy" rating, while one brokerage firm calls the stock a "hold." However, the consensus 12-month target price of $37.86 exceeds Canaccord's estimate, and sits in a region never before touched by the security. 

Short sellers started to cash out during the equity's recent technical struggles, with short interest down 6.5% in the latest reporting period. However, the 1.46 million shares sold short still represent a solid 7.7% of the stock's available float, or 13.3 times the average daily pace of trading.


a schaeffer's exclusive

5 NEW STOCK PICKS

We're celebrating 38 years with this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.
GDP, Consumer Spending Data in Post-Fed Spotlight
Next week will feature the final second-quarter GDP and fresh housing market data
Oversold Pot Stock Catches a Lift
PRVB stock is eyeing its lowest close in months, while IGC stock is set for a big win
What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.