Wall Street remains bullish on Viking Therapeutics despite June rally and recent dip
Consensus price target sits just below $91, implying 150% upside, as investors weigh trial timelines against tolerability risks.
Wall Street analysts are maintaining a highly bullish outlook on Viking Therapeutics (NASDAQ: VKTX), citing the strong potential of its lead weight-loss drug candidate, VK2735. The sentiment persists despite a recent dip in the stock’s price, which had surged more than 19% in June. According to data from Visible Alpha, the consensus price target for the stock is just below $91, representing a potential 150% return from current levels.
The optimism is largely driven by VK2735, a dual-formulation therapy designed to be administered initially via subcutaneous injection and later as an oral maintenance dose. The drug has shown promising efficacy in phase 2 trials, with data indicating a steeper velocity of weight loss compared to rival treatments. Investors are anticipating that these results will be replicated in the ongoing phase 3 trials.
The subcutaneous phase 3 trial is currently in progress, while the oral phase 3 trial is scheduled to begin in the fourth quarter of this year. However, the timeline for regulatory clarity remains extended. Results from the subcutaneous phase 3 trial are not expected until late 2027 at the earliest, with oral phase 3 results due in 2028.
In the interim, a phase 1 maintenance dosing trial is underway, involving participants taking subcutaneous VK2735 for 19 weeks before switching to maintenance doses. Results from the subcutaneous period of this trial are due in the current quarter, while oral maintenance results are expected in the first half of 2027. These near-term data points may provide early indicators of the drug’s long-term viability.
Despite the positive analyst sentiment, risks remain. Tolerability data from the phase 2 oral trial has raised some concerns, and the Motley Fool, while recommending the stock, did not include Viking Therapeutics in its current list of 10 best stocks to buy. Cautious investors may prefer to wait for the maintenance trial results before committing capital, given the multi-year horizon for phase 3 outcomes.
