Viking Therapeutics (NASDAQ:VKTX) inventory is up approximately 310% year-to-date (YTD), making it the highest gainer amongst U.S.-listed mid-cap shares. Salad-focused restaurant chain Sweetgreen (NYSE:SG) is a distant second, with a YTD return of 121%. A bit of over a yr faraway from being a little-known Casadefinance Reader stock, VKTX climbed as excessive as $99.41 on February 28, 2024. Regardless of its rise, analysts stay bullish. In actual fact, all eight analysts which have coated the inventory over the previous month have assigned it a Purchase ranking.
Viking Therapeutics’ quick 2024 begin is all in regards to the weight reduction drug increase. The San Diego-based biopharmaceutical firm develops novel therapies for numerous metabolic and endocrine issues. It has three applications which might be in scientific trials — together with potential therapies for NASH and X-ALD — however curiosity within the inventory is centered on VK2735, the corporate’s revolutionary weight problems drug.
It’s onerous to go towards the Road’s unanimously bullish view of VKTX. I, too, see the inventory shifting larger from right here, given its publicity to an weight problems drug market that might exceed $100 billion by 2030. Giant-cap peer Novo Nordisk (NYSE:NVO) has seen its share worth surge in current months because of the immense recognition of its Ozempic and Wegovy medicine. The valuations of Eli Lilly & Co. (NYSE:LLY) and people of a number of different pharmaceutical corporations creating GLP-1 weight problems medicine have additionally swelled since final yr.
Viking Therapeutics is shortly making a reputation for itself on this market. Let’s see what analysts are saying in regards to the firm’s development potential.
Viking Therapeutics’ Weight problems Program Is Advancing
5-star-rated Oppenheimer analyst Jay Olson could also be Viking Therapeutics’ greatest bull. Final week, Olson raised his price target on VKTX to a Street-high $138.00, which means 80% upside from present ranges. This got here after the biotech reported constructive top-line outcomes from the Part 1 trial of oral VK2735. The analyst famous that the outcomes of the Part 1 trial assist development into Part 2, which expands an already spectacular alternative for Viking Therapeutics’ weight problems program.
In tandem with its oral weight reduction tablet, the corporate is creating an injectable formulation of VK2735, which is displaying promising outcomes of its personal. In February 2024, Viking Therapeutics introduced constructive top-line outcomes from its Part 2 VENTURE trial of the injectable candidate. Sufferers with weight problems noticed as much as 13.1% placebo-adjusted imply weight reduction after 13 weeks of therapy. Providing each injectable and oral choices might assist the corporate seize a larger share of the weight problems administration market.
Oppenheimer isn’t the one one feeling bullish about VKTX. Naz Rahman from Maxim Group just lately reiterated his Buy rating on the stock and saved a $120.00 worth goal. The analyst cited a number of components, together with the encouraging scientific outcomes. The oral pill model of VK2735 achieved as much as 3.3% imply weight reduction in a 28-day a number of ascending dose (MAD) research.
Extra importantly, Rahman believes that the drug’s favorable security profile may give Viking Therapeutics a aggressive benefit. In comparison with different GLP-1 medicine, VK2735 had a low incidence of gastrointestinal (GI) hostile results.
Viking Therapeutics plans to provoke a Part 2 trial of oral VK2735 within the second half of 2024. As administration famous, this research may characteristic longer therapy durations and better doses, which maintain the potential for larger weight reduction.
Grownup Weight problems Has Extra Than Doubled Since 1990
A current World Well being Group (WHO) report reveals that 43% of adults are obese, and 16% reside with weight problems. Globally, grownup weight problems has greater than doubled, and adolescent weight problems has quadrupled since 1990. Weight problems has a number of adverse well being penalties — together with elevated threat of coronary heart illness, kind 2 diabetes, and sure cancers — and is, due to this fact, a significant world well being subject.
What does this imply for Viking Therapeutics? If the corporate can proceed to display the efficacy and security of its weight problems medicine, it may ultimately have two commercialized merchandise to promote. And if healthcare practitioners proceed to prescribe weight administration medicine to fulfill rising affected person demand, Viking Therapeutics may get a big chunk of a big, rising market.
What Is the Consensus Value Goal for VKTX Inventory?
Turning again to Wall Road, Viking Therapeutics has a Sturdy Purchase consensus ranking. That is primarily based on 9 Buys, no Holds, and no Sells issued previously three months. The average Viking Therapeutics stock price target is $113.50, which means 48.3% upside potential over the subsequent 12 months. Analyst worth targets vary from $90.00 to $138.00.
The Backside Line on VKTX Inventory
Viking Therapeutics has proven promising leads to early-phase research of its injectable and oral weight problems drug candidates. The corporate’s share worth has already quadrupled this yr, however the Wall Road group continues to supply bullish commentary. This implies that it might not be too late for traders to achieve from 2024’s best-performing mid-cap inventory.
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