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Investing.com - Laidlaw maintained its Buy rating and $110.00 price target on Viking Therapeutics (NASDAQ:VKTX) following the company’s release of topline results from its Phase IIa oral VK2735 study for obesity treatment. The stock has experienced significant volatility, falling 41% in the past week, though analyst targets remain optimistic, ranging from $33 to $125 per share.
The research firm acknowledged that while efficacy results were robust, safety concerns emerged with higher-than-expected discontinuation rates and gastrointestinal adverse events in the VENTURE-Oral Dosing study.
Laidlaw believes investors overreacted to the safety data, noting that the study provides valuable insights that could help Viking design future trials with improved safety profiles while maintaining efficacy.
The firm suggested that increasing up-titration time and focusing on middle-range dosing levels could address the safety concerns in future studies, with substantial information on dose range and pharmacokinetics already available.
Laidlaw remains bullish on Viking’s two lead products - VK2809 for NASH (non-alcoholic steatohepatitis) and VK2735 for obesity - stating that both have been "significantly de-risked," with their valuation based on peer comparable and sum-of-the-parts analyses.
In other recent news, Viking Therapeutics has released positive topline results from its Phase 2 trial of the oral drug VK2735, aimed at addressing obesity. The trial demonstrated dose-dependent weight loss, with the highest dose of 120mg achieving a 12.2% reduction from baseline over 13 weeks. Analysts have responded to these developments, with Raymond (NSE:RYMD) James reiterating a Strong Buy rating and setting a price target of $122.00. Morgan Stanley (NYSE:MS) also maintained an Overweight rating with a $98.00 price target, noting the significant weight loss achieved at the highest dose. Jefferies continued its Buy rating with a $101.00 price target, suggesting that the market may be overreacting to gastrointestinal side effects and discontinuation rates. H.C. Wainwright reiterated a Buy rating with a $102.00 price target despite the stock’s negative reaction to the trial results. Stifel also upheld its Buy rating, setting a price target of $95.00, emphasizing the trial’s statistically significant results. These developments highlight ongoing analyst confidence in Viking Therapeutics’ potential despite market fluctuations.
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