Scotiabank starts Viking Therapeutics at Outperform, sees attractive entry point

As previously reported, Scotiabank analyst George Farmer initiated coverage of Viking Therapeutics (VKTX) with an Outperform rating and $102 price target The firm sees “an attractive entry point” after a stock rally and subsequent pullback following a report last year of “highly promising” results from the company’s Phase 2 trial evaluating lead injectable GLP1/GIP dual-receptor agonist VK2735 for the treatment of obesity. The firm believes the pullback was catalyzed by negative read-through from competitor trial results and regulatory uncertainty, but it thinks Viking’s results to date support a “highly competitive” profile for VK2735 and support a high likelihood of the product being approved in 2028, the analyst tells investors.