Gold prices edge higher on raised Fed rate cut hopes
On Wednesday, H.C. Wainwright reiterated its Buy rating on Viking Therapeutics (NASDAQ:VKTX) with a price target of $102.00. The firm’s analyst, Joseph Pantginis, highlighted the company’s first-quarter financial results, which were announced after the market closed on Tuesday. Viking reported an earnings per share (EPS) loss of $0.41, which was wider than both the estimated loss of $0.26 and the consensus estimate of $0.31. Despite this, the company reported a strong cash position with $852 million on hand. According to InvestingPro data, Viking maintains a healthy current ratio of 33.09 and holds more cash than debt on its balance sheet, with minimal total debt of just $1.12 million. The stock currently appears overvalued based on InvestingPro’s Fair Value analysis.
Viking Therapeutics is expected to continue its momentum throughout 2025 with its VK2735 program, which is seen as competitively positioned in the dynamic landscape of obesity and type 2 diabetes treatments. This outlook comes in light of recent developments, including Phase 3 data from Eli Lilly (NYSE:LLY) and the discontinuation of Pfizer (NYSE:PFE)’s oral danuglipron, both competitors in the space. InvestingPro data shows the stock has demonstrated volatility, with a significant 7.73% return over the last week, despite experiencing a substantial 64.78% decline over the past six months. For deeper insights into Viking’s market position and potential, InvestingPro offers comprehensive analysis with 10+ additional ProTips and detailed financial metrics.
The company has several key milestones ahead for VK2735. Phase 3 trials for the subcutaneous formulation are set to begin in the second quarter of 2025 for individuals with obesity and those with obesity and type 2 diabetes. Moreover, the Phase 2a VENTURE-Oral Dosing Trial for the oral tablet version of VK2735 is fully enrolled with approximately 280 adults, and results are anticipated in the second half of 2025.
Additionally, Viking is progressing with its Dual Amylin and Calcitonin Receptor Agonist (DACRA) Program, with an Investigational New Drug (IND) filing expected in the second half of 2025. The company has also secured a manufacturing agreement with CordenPharma for the active pharmaceutical ingredient (API) and final product supply of VK2735 in both oral and subcutaneous forms. This agreement is considered a strategic move as Viking prepares for potential commercialization of its products.
In summary, the reiteration of the Buy rating and $102 price target by H.C. Wainwright reflects confidence in Viking Therapeutics’ financial stability and the potential of its VK2735 program. The company’s strategic steps toward commercialization, along with upcoming trial data, are anticipated to further strengthen its position in the market. InvestingPro analysis reveals strong analyst support, with a consensus recommendation of 1.61 (where 1 is Strong Buy) and price targets ranging from $30 to $125. Discover Viking’s complete financial story and access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Viking Therapeutics reported a net loss of $0.41 per share for the first quarter of 2025, which fell short of analysts’ expectations of a $0.33 loss per share. The company’s financial performance was marked by increased spending on research and development, with expenses rising to $41.4 million from $24.1 million in the same period last year. Despite the earnings miss, Viking Therapeutics maintains a strong cash position, with reserves totaling $852 million as of March 31, 2025. The company is advancing its VK2735 obesity program, with Phase III trials set to begin in the second quarter of 2025. Additionally, Viking Therapeutics has entered into a long-term manufacturing agreement to support the future commercialization of VK2735. The company is also exploring new programs, including an amylin receptor agonist, with an IND filing expected by the end of 2025. Analyst feedback from firms like Truist Securities and Morgan Stanley (NYSE:MS) highlighted the company’s progress and the competitive landscape in obesity treatment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.