Morgan Stanley reiterates Overweight rating on Viking Therapeutic stock

Investing.com - Morgan Stanley (NYSE:MS) has reiterated an Overweight rating and $98.00 price target on Viking Therapeutic (NASDAQ:VKTX), currently trading at $24.64, following clinical trial results for its oral weight loss drug VK2735. According to InvestingPro data, the stock has shown strong momentum with a 30% gain over the past six months.

The highest dose of oral VK2735 (120mg) achieved 12.2% weight loss, exceeding the approximately 8% threshold considered significant. Lower doses of 30mg and 60mg showed weight loss of 7.0% and 8.7%, respectively.

Morgan Stanley noted higher gastrointestinal adverse event rates suggest the drug’s profile is more similar to oral competitors, but indicated these effects could potentially be mitigated through slower titration in future studies.

An exploratory low dose maintenance cohort (30mg or less) demonstrated support for a potential oral maintenance approach. The study remains on track to begin in the third quarter of 2025.

The Phase 2a oral data confirms a competitive profile for the drug and supports its potential use in obesity maintenance, factors that contributed to Morgan Stanley maintaining its Overweight rating on the stock. For deeper insights into VKTX’s valuation and 12+ additional ProTips, visit InvestingPro.

In other recent news, Viking Therapeutics has been the focus of several analyst updates and trial results. The company announced positive topline results from its Phase 2 VENTURE-Oral Dosing Trial for VK2735, achieving a 12.2% average weight loss from baseline at 13 weeks with the 120 mg dose. Despite these results, the stock experienced a significant decline, which analysts attribute to market dynamics and concerns over tolerability at higher doses. Jefferies, Stifel, and BTIG have all reiterated their Buy ratings on Viking Therapeutics, with price targets of $101.00, $95.00, and $125.00, respectively. Analysts from Jefferies believe the market is overreacting to gastrointestinal adverse events, suggesting potential solutions through dosing optimization. Stifel highlighted the dose-dependent weight loss and early statistical significance achieved in the trial. Meanwhile, BTIG pointed to competitive positioning concerns in the obesity treatment market. H.C. Wainwright also maintained a Buy rating with a $102.00 price target, despite the stock’s negative reaction.

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