RYTM - Rhythm Pharma shares are cheap Stifel says as they boost price target 86%

Stifel analyst Derek Archila raises price target for Rhythm (RYTM) from $36 to $67, a more than 86% increase.At current levels, he says shares are "very cheap."Archila cites "compelling data" from a Phase 2 basket trial of Imcivree (setmelanotide) for obesity as a catalyst.Trial results, released yesterday, examined patients with severe obesity to due to genetic variants in the melanocortin-4 receptor (MC4R) pathway.Archila says that a Phase 3 basket trial permitted by the FDA in the first half of the year "will expedite [Rhythm's] path to a much larger addressable market (>100k+ vs. 5k patients for the first four indications).Despite Archila's optimism, shares are slumping in afternoon trading, down 7.3% to $31.56.

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Rhythm Pharma shares are "cheap," Stifel says as they boost price target 86%