Piper Sandler reiterates Overweight rating on Viking Therapeutic stock

Investing.com - Piper Sandler has reiterated an Overweight rating on Viking Therapeutic (NASDAQ:VKTX) with a price target of $71.00 ahead of upcoming Phase 2 data. Currently trading at $40.03, the stock has shown strong momentum with a 36.81% gain over the past six months. According to InvestingPro data, analyst targets range from $33 to $125, reflecting diverse market expectations.

The firm believes the setup for Viking is "compelling" with Phase 2 VENTURE-Oral data expected within the third quarter of 2025.

Piper Sandler notes that Eli Lilly (NYSE:LLY)’s orforglipron Phase 3 efficacy miss has reset expectations across the oral incretin space, potentially creating an opportunity for Viking’s oral VK2735.

The research firm currently maintains "conservative" peak worldwide sales estimates of approximately $2.1 billion for oral VK2735, significantly below consensus estimates for competing oral incretin therapies.

For comparison, Piper Sandler points out that consensus peak worldwide sales estimates for Eli Lilly’s orforglipron and Novo Nordisk (NYSE:NVO)’s oral semaglutide stand at $23 billion and $5.6 billion, respectively.

In other recent news, Viking Therapeutics has reported its second-quarter financial results, revealing a loss of $0.58 per share. This exceeded both the consensus estimate of $0.44 and H.C. Wainwright’s estimate of $0.42, primarily due to higher research and development expenses totaling $60.2 million. Despite the financial loss, several analyst firms have reiterated their positive outlook on Viking Therapeutics. H.C. Wainwright maintained a Buy rating with a $102 price target, while Cantor Fitzgerald reiterated an Overweight rating with a $104 price target. Stifel also reiterated a Buy rating, highlighting the company’s strong progress in its obesity treatment pipeline, particularly the rapid enrollment in its Phase 2 VENTURE-Oral trial. Oppenheimer continues to rate the stock as Outperform with a $100 price target, citing a favorable risk/reward profile. Additionally, Viking’s stock experienced a boost following Eli Lilly’s obesity drug data, which fell short of investor expectations, raising interest in Viking’s offerings. These developments indicate continued confidence from analysts in Viking’s potential despite recent financial challenges.

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