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Investing.com - Raymond (NSE:RYMD) James has reiterated its Strong Buy rating and $122.00 price target on Viking Therapeutics (NASDAQ:VKTX), citing competitive advantages of the company’s oral VK2735 drug for weight loss. The target represents significant upside from the current price of $24.36, with analyst targets ranging from $33 to $125. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis.
The research firm’s analysis indicates that VK2735 could potentially be "the best oral incretin with at least 12 weeks of placebo-controlled data currently in clinical development" after comparing it against competitors including Lilly’s orforglipron, Novo’s amycretin, Novo’s oral semaglutide, Structure’s GSBR-1290, and Roche/Carmot’s CT-996. Despite the positive outlook, the stock has fallen nearly 41% in the past week, though InvestingPro analysis shows the company maintains a "GOOD" overall financial health score.
Raymond James highlighted that the highest dose arms for oral VK2735 and Novo’s amycretin achieve weight loss in the 10-12% placebo-adjusted range, with VK2735 showing better vomiting treatment-emergent adverse event rates at these doses compared to competitors.
The firm noted that VK2735’s study discontinuation rates of 8-13% versus 5% for placebo were "actually in a range roughly comparable to competitors," despite increasing from Phase 1 trials, and suggested that more relaxed titration in future studies could reduce gastrointestinal side effects and discontinuation rates.
Raymond James also pointed to VK2735’s oral maintenance dosing data, which suggests a lower maintenance dose (90mg reduced to 30mg) could potentially maintain or extend initial weight loss achieved at higher doses. For deeper insights into Viking Therapeutics’ valuation, financial health metrics, and exclusive ProTips, visit InvestingPro, where you’ll find comprehensive research reports and expert analysis.
In other recent news, Viking Therapeutics has reported positive topline results from its Phase 2 trial of the oral weight loss drug VK2735. The trial demonstrated significant weight loss, with the highest dose of 120 mg achieving a 12.2% reduction from baseline over 13 weeks. Despite robust efficacy, safety concerns were noted due to gastrointestinal adverse events and higher-than-expected discontinuation rates. Analysts from Laidlaw, Raymond James, and Jefferies maintained their Buy ratings, with price targets set at $110.00, $122.00, and $101.00, respectively. Raymond James highlighted the dose-dependent weight loss, while Jefferies suggested that the market may be overreacting to the safety profile. Morgan Stanley (NYSE:MS) reiterated an Overweight rating and a $98.00 price target, emphasizing the significant weight loss achieved. H.C. Wainwright also maintained a Buy rating with a $102.00 target, acknowledging the positive efficacy results despite market reactions. These developments reflect ongoing analyst confidence in Viking Therapeutics’ potential solutions through dosing optimization.
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