Viking Therapeutics initiated with a Buy at Jefferies

Jefferies initiated coverage of Viking Therapeutics (VKTX) with a Buy rating and $110 price target. The company is developing VK2735 for obesity and the recent Phase 2 showed up to 13.1% placebo-adjusted weight loss at 13 weeks, which is better than Eli Lilly’s (LLY) tirzepatide, the analyst tells investors in a research note. The firm models $12B in peak adjusted sales for VK2735 in obesity, and notes “palpable strategic interest in the metabolic space from big pharma.”