Buy Rating Affirmed for Viking Therapeutics Amidst Strong Clinical Progress and Strategic Moves

Thomas Smith, an analyst from Leerink Partners, reiterated the Buy rating on Viking Therapeutics (VKTX – Research Report). The associated price target remains the same with $115.00.

Thomas Smith has given his Buy rating due to a combination of factors surrounding Viking Therapeutics’ promising clinical advancements and strategic planning. His confidence in recommending VKTX stock is rooted in the recent positive data from the company’s obesity and NASH programs. Viking Therapeutics reported robust topline data for their drug VK2735, showing significant weight loss outcomes and an encouraging safety profile, a key element that could differentiate it from competitors in the obesity treatment market. The company’s ongoing Phase 1b trial of the oral formulation of VK2735 and plans to progress with both oral and subcutaneous versions into later-stage trials later this year bolster the optimism for this treatment’s future success.

Moreover, Smith’s optimism is further supported by Viking’s anticipated release of 52-week histology data from the VOYAGE trial for their other drug, VK2809, in treating NASH. Management’s expectations of positive, though not statistically significant, improvements in NASH resolution and fibrosis offer a glimpse into the drug’s potential efficacy. Alongside this, the possibility of strategic partnerships as Viking moves towards a Phase 3 NASH program and upcoming topline data from a study on VK0214 in X-linked adrenoleukodystrophy (X-ALD) contribute to the company’s promising outlook. Collectively, these factors underlie Smith’s recommendation and the belief that Viking’s stock is poised for growth as further data and development plans unfold.

In another report released yesterday, H.C. Wainwright also reiterated a Buy rating on the stock with a $90.00 price target.

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Viking Therapeutics (VKTX) Company Description:

Viking Therapeutics, Inc. is a clinical-stage biopharmaceutical company, which engages in the development of novel therapies for patients suffering from metabolic and endocrine disorders. The company’s clinical program VK5211, treats patients recovering from non-elective hip fracture surgery. It also specializes in development of VK2809 and VK0214. The company was founded by Brian Lian and Michael A. Dinerman on September 24, 2012 and is headquartered in San Diego, CA.