Terns Pharmaceuticals stock rating reiterated at Mizuho amid oral GLP-1 market shifts

Investing.com - Mizuho (NYSE:MFG) has reiterated an Outperform rating and $14.00 price target on Terns Pharmaceuticals (NASDAQ:TERN) following recent developments in the oral GLP-1 obesity treatment landscape. According to InvestingPro data, this news comes as Viking Therapeutics trades significantly below its 52-week high of $81.73, with analyst targets ranging from $33 to $125 per share.

The reaffirmation comes after Viking Therapeutics (NASDAQ:VKTX) announced 13-week Phase 2 data for its oral GIP/GLP-1-based obesity candidate VK2735, which met its primary endpoint of weight loss across all tested doses but triggered a 42% stock decline due to tolerability concerns. Despite the setback, Viking maintains a strong financial position with a current ratio of 25.86 and minimal debt, as revealed by InvestingPro’s comprehensive analysis.

Mizuho noted that Viking’s results showed very high rates of vomiting at the highest doses and significant discontinuation rates, marking the second consecutive disappointing data set for an oral GLP-1-based obesity treatment following Eli Lilly’s (NYSE:LLY) orforglipron results.

Despite these setbacks in the oral GLP-1 market, Mizuho maintains its positive outlook on Terns Pharmaceuticals’ TERN-601, suggesting the candidate could demonstrate differentiation particularly regarding tolerability.

Key Phase 2 data for TERN-601 is expected in the fourth quarter of 2025, which Mizuho believes could position Terns’ oral GLP-1 favorably against injectable alternatives in the competitive obesity treatment market.

In other recent news, Viking Therapeutics has been the focus of several analyst reviews following the release of topline data from its Phase 2 obesity study. Raymond (NSE:RYMD) James has reiterated its Strong Buy rating with a $122.00 price target, highlighting the competitive advantages of Viking’s oral VK2735 drug for weight loss. The study demonstrated dose-dependent weight loss, with the highest dose achieving a 12.2% reduction, significantly outperforming the placebo. Morgan Stanley (NYSE:MS) also maintained an Overweight rating and a $98.00 price target, noting the drug’s effectiveness at various dosages. Meanwhile, Laidlaw held its Buy rating with a $110.00 price target, despite acknowledging safety concerns such as higher-than-expected discontinuation rates and gastrointestinal adverse events. Jefferies reiterated its Buy rating and $101.00 price target, suggesting the market may be overreacting to the adverse events while underappreciating potential dosing solutions. These developments reflect a range of analyst perspectives on Viking Therapeutics’ ongoing clinical trials and drug potential.

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