Viking Therapeutics (NASDAQ:VKTX) stock gained about 17% on Tuesday after the company released positive results from the Phase 1 trial of its weight loss pill, VK2735. The promising data positions the biopharmaceutical company favorably in the race to develop effective weight loss therapies and potentially compete against Eli Lilly’s (LLY) and Novo Nordisk’s (NVO) obesity injections.
While the early-stage trial showed promising data, the company’s CEO, Brian Lian, emphasized that prolonged treatment duration, possibly with increased doses, could lead to additional weight loss. Further, initial safety and tolerance findings were encouraging, with minimal side effects reported. Based on this outcome, the company expects to begin the drug’s Phase 2 trial later this year.
Analyst Joseph Pantginis from H.C. Wainwright believes that Viking’s plans to enter the next stage of development reflect its confidence in the pill. Furthermore, he is impressed with the drug’s safety profile. Following the release of positive trial results, Pantginis reiterated a Buy rating on VKTX stock with a price target of $90 (11.3% upside potential). Echoing similar sentiments, two other analysts maintained Buy ratings and also raised their price targets on the stock.
Is VKTX Stock a Good Buy?
VKTX’s shares have skyrocketed nearly 786% in the past year, significantly outperforming the Nasdaq 100 Index (NDX) rally of about 44%. Despite this impressive rally, analysts’ average price target on Viking stock of $108.50 implies an upside potential of 34.23%.
Overall, Wall Street is optimistic about the company. It has a Strong Buy consensus rating based on nine unanimous Buy ratings.
