Rhythm Pharmaceuticals' (RYTM) early Imcivree feedback from four pediatric endocrinologists managing hypothalamic obesity patients is encouraging, RBC said in a note Thursday.

RBC analysts said they spoke with the four key opinion leaders, who collectively have over 40 hypothalamic obesity patients, to assess the early launch of Imcivree.

"Our conversations were constructively encouraging," the report said, adding that three of the four KOLs already have patients on Imcivree and three also expect to increase their use of the drug.

All four viewed Imcivree favorably, the report said.

Based on the feedback, RBC analysts raised their estimated peak HO penetration to 20% from 15% and peak sales estimate to $1.5 billion from $1.3 billion.

RBC raised its price target to $159 from $155 and reiterated its outperform rating with speculative risk.

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