JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Tuesday, H.C. Wainwright reaffirmed its Buy rating on Viking Therapeutics (NASDAQ:VKTX), with a steady price target of $102.00. Currently trading at $27.96, the stock has significant upside potential according to analysts, with targets ranging from $38 to $164. InvestingPro data shows the company maintains a FAIR financial health score, with particularly strong metrics in price momentum and cash flow management. The firm’s analyst highlighted positive data from a competitor’s clinical trial, which reinforces the potential of Viking’s own treatment, VK2735, for obesity. While the stock has experienced a significant 54% decline over the past six months, the company’s strong balance sheet, with more cash than debt and a remarkable current ratio of 33.09, positions it well for continued clinical development.
Novo Nordisk (NYSE:NVO), a separate pharmaceutical company, announced on March 10 the results from its Phase 3 REDEFINE-2 trial for CagriSema, a treatment for obesity and overweight in patients with type 2 diabetes. The trial showed significant weight loss in patients over 68 weeks. This announcement has shed a positive light on Viking’s VK2735, which is set to commence Phase 3 trials in obesity in the second quarter of 2025.
The analyst pointed out that Viking’s VK2735 has demonstrated up to 14.7% weight loss in just 13 weeks during its Phase 2 VENTURE trial, in obese patients without type 2 diabetes. This is particularly noteworthy as weight loss with GLP-1 receptor agonists, the class of drugs to which VK2735 belongs, tends to be more substantial in individuals without diabetes.
Comparing the results of Novo Nordisk’s REDEFINE-1 and REDEFINE-2 trials, the analyst suggested that VK2735 has not yet reached a weight-loss plateau at 13 weeks, indicating the possibility of further weight reduction with extended treatment. This suggests that VK2735 could be a strong candidate for future clinical trials in type 2 diabetes, given its dual GLP-1/GIP receptor agonist mechanism.
Based on the promising efficacy of VK2735 in obesity, H.C. Wainwright believes that Viking Therapeutics could offer a compelling alternative in the metabolic disease treatment space, potentially benefiting patients with obesity as well as those with both obesity and type 2 diabetes. The firm’s endorsement of Viking’s stock with a Buy rating and a $102 price target reflects confidence in the company’s prospects. According to InvestingPro analysis, Viking’s current valuation appears fair, though investors should note that analysts don’t expect profitability this year. For deeper insights into Viking’s financial health and growth potential, including 8 additional ProTips and comprehensive valuation metrics, explore the full Pro Research Report available on InvestingPro.
In other recent news, Viking Therapeutics has announced a strategic manufacturing agreement with CordenPharma to secure a steady supply of its VK2735 obesity treatment. This agreement will ensure the production of the active pharmaceutical ingredient and final product forms, positioning Viking for a potential market launch. Meanwhile, Viking reported its fourth-quarter 2024 earnings, revealing an EPS of -$0.32, which missed analyst forecasts. The company’s R&D expenses rose significantly, reflecting its commitment to advancing its clinical programs, while maintaining a strong cash position of $930 million. Analyst firms have provided mixed outlooks on Viking Therapeutics. Citi initiated coverage with a Neutral rating and a $38 price target, citing the competitive obesity treatment market as a challenge. In contrast, Truist Securities maintained a Buy rating, albeit with a reduced price target of $95, emphasizing the company’s financial stability and upcoming milestones. H.C. Wainwright also reaffirmed its Buy rating with a $102 price target, highlighting Viking’s progress in its obesity treatment franchise. As Viking continues to advance its VK2735 program, it plans to initiate Phase 3 trials in the second quarter of 2025.
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