Wall Street Sees a Huge Rebound for Viking Therapeutics. Here's Why Analysts Are So Optimistic.
The weight loss market is highly competitive, but Viking only needs to carve out a small niche in it with VK2735 in order to generate significant value for investors.
Wall Street is buzzing with optimism over Viking Therapeutics (NASDAQ: VKTX), a stock currently trading around $30 per share. Analysts have a consensus target price of $90.89 for the stock, with nine brokers rating it a buy while only one has rated it neutral. Investors are eagerly anticipating Viking's dual GLP-1 and GIP agonist, VK2735, which could challenge the weight loss dominance of Eli Lilly's Zepbound (tirzepatide) and Novo Nordisk's Wegovy (semaglutide).
The potential for VK2735 to dominate the market lies in two key factors. Firstly, it's being developed as a dual formulation therapy, which means patients could initially take a subcutaneous (injectable) dose of VK2735 for initial weight loss, and then switch to an oral dose for long-term maintenance. This dual approach is a game-changer, as it offers both convenience and efficacy.
Secondly, an Oppenheimer analyst has noted that oral VK2735 could be taken after initial dosing with injectable tirzepatide and semaglutide, providing patients with flexibility in their treatment regimen.
The potential for a steeper onset of weight loss from VK2735 is another reason for Wall Street's excitement. This could mean that patients experience significant weight loss more quickly than with currently available treatments, leading to better patient outcomes and greater demand for the drug. With these factors in play, analysts are bullish on Viking Therapeutics, predicting a huge rebound for the stock.
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