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On Tuesday, Cantor Fitzgerald began coverage of Viking Therapeutics (NASDAQ:VKTX) shares, assigning an Overweight rating and setting a price target at $104.00. According to InvestingPro data, analyst targets for the stock range from $30 to $125, with the company currently trading at $25.94. The stock has experienced significant volatility, falling over 64% in the past six months. The new coverage is based on the potential of the company’s leading drug candidate, VK2735, which is a GLP-1/GIP dual agonist currently progressing towards Phase 3 trials for the treatment of general obesity.
The firm’s analysts highlighted the upcoming Phase 2 data for the oral formulation of VK2735, expected in the second half of 2025, as a significant upcoming catalyst for the company. However, their confidence in Viking Therapeutics’ prospects is primarily anchored in the subcutaneous (subQ) formulation of the drug, which is slated to enter Phase 3 clinical trials in the second quarter of 2025. InvestingPro analysis shows the company maintains a strong financial position with more cash than debt and liquid assets exceeding short-term obligations, though it’s currently not profitable.
Viking Therapeutics’ focus on VK2735 comes at a time when obesity continues to be a major health issue worldwide, with few effective pharmaceutical treatments available. The initiation of Phase 3 development for VK2735 represents a critical step for the company as it aims to address this unmet medical need.
The Overweight rating suggests that Cantor Fitzgerald’s analysts believe Viking Therapeutics stock has a higher potential to outperform the average total return of the stocks in the analyst’s coverage universe over the next 12 to 18 months. The $104.00 price target indicates a significant upside from the current trading levels of Viking Therapeutics shares.
Investors will be closely monitoring the progress of VK2735 as Viking Therapeutics continues its journey through the clinical trial process, with the upcoming Phase 2 data release being the next key milestone to watch. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels. InvestingPro subscribers have access to 8 additional key insights about Viking Therapeutics, along with comprehensive financial metrics and expert analysis in the Pro Research Report, helping investors make more informed decisions about this emerging biotech company.
In other recent news, Viking Therapeutics reported a net loss of $0.41 per share for the first quarter of 2025, which was wider than analysts’ expectations of a $0.33 loss per share. The company’s financial results highlighted increased spending on research and development, with expenses rising to $41.4 million from $24.1 million in the same period the previous year. Despite the earnings miss, Viking maintains a strong cash position with $852 million on hand as of March 31, 2025. H.C. Wainwright reiterated its Buy rating on Viking Therapeutics, setting a price target of $102.00, reflecting confidence in the company’s financial stability and future potential. Viking is advancing its VK2735 obesity treatment program, with Phase 3 trials scheduled to commence in the second quarter of 2025. The company has also secured a manufacturing agreement with CordenPharma to support the potential commercialization of VK2735 in both oral and subcutaneous forms. Analysts from H.C. Wainwright express optimism about Viking’s strategic steps towards commercialization and its competitive positioning in the obesity and type 2 diabetes treatment landscape.
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