Oppenheimer reiterates Outperform rating on Viking Therapeutic stock

Investing.com - Oppenheimer has maintained its Outperform rating and $100.00 price target on Viking Therapeutic (NASDAQ:VKTX) stock, citing a favorable risk/reward profile ahead of upcoming clinical data. The target represents significant upside potential from the current price of $40.03, though InvestingPro analysis indicates the stock is trading above its Fair Value, with analyst targets ranging from $33 to $125.

The research firm highlighted that Viking shares have gained 25% since Eli Lilly reported second-quarter results on August 7, 2025, outperforming the XBI biotech index which rose only 5% during the same period. The $4.5 billion market cap company maintains a strong financial position, with InvestingPro data showing more cash than debt and a healthy current ratio of 25.86.

Oppenheimer remains optimistic about the weight-loss and tolerability profile of Viking’s oral VK2735 drug based on previous data, with the firm’s scenario analysis forecasting approximately 20% probability-adjusted upside upon the Phase 2a VENTURE-Oral topline data expected in the second half of 2025. According to InvestingPro, the company’s overall financial health score is GOOD at 2.7, despite current unprofitability.

The firm noted that positive signals from the exploratory maintenance dosing arm could favorably impact Viking’s maintenance study planned for the third quarter of 2025 and potentially expand the commercial opportunity for oral VK2735.

Oppenheimer also referenced an external obesity business development analysis that supports deal potential for VK2735, reinforcing the firm’s bullish stance on the stock.

In other recent news, Viking Therapeutics reported a second-quarter 2025 loss of $0.58 per share, which was larger than anticipated by analysts. The consensus estimate was a loss of $0.44 per share, with H.C. Wainwright projecting a $0.42 loss. The increased loss was mainly due to higher research and development expenses, which reached $60.2 million. Despite the earnings miss, Stifel, Cantor Fitzgerald, and H.C. Wainwright have maintained their Buy ratings on Viking Therapeutics, with price targets of $95, $104, and $102, respectively. Stifel emphasized the company’s progress in its obesity treatment pipeline, particularly the Phase 2 VENTURE-Oral trial for VK2735, with data expected in the second half of 2025. Cantor Fitzgerald reiterated its Overweight rating following the earnings report, noting the unchanged timeline for Phase 2 data release. Additionally, Eli Lilly’s recent data on its obesity drug orforglipron fell short of expectations, indirectly benefiting Viking Therapeutics by raising interest in its own obesity treatments. These developments reflect investor optimism about Viking’s future growth prospects in the obesity treatment sector.

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