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.