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Cantor Fitzgerald has high expectations for Viking Therapeutics’ GLP-1 drug, VK2735, labeling it as a potential “multi-blockbuster” for the company’s stock prospects.
On Tuesday, shares of Viking Therapeutics (VKTX 8.63%) saw an increase of 12.5% by 11:40 a.m. ET, buoyed by further encouragement from financial analysts.
On the previous Monday, Viking’s stock had experienced a modest rise after Truist Securities analyst Joon Lee adjusted his price target downwards. Lee remains optimistic about the firm’s prospects, suggesting they might gain from forthcoming phase 3 trial results concerning the VK2735 weight loss drug. Today’s surge is attributed to stronger backing from Cantor Fitzgerald’s Steven Seedhouse, who has labeled the stock a buy and predicts a substantial increase from the current price of $29 to an estimated $104 within the next year.
Cantor Fitzgerald’s Positive Outlook on Viking Therapeutics
Seedhouse is direct in his assessment: “Our analysis centers on the primary injectable drug, VK2735, a GLP-1/GIP dual agonist that is moving into phase 3 trials aimed at addressing general obesity.”
Additionally, Viking Therapeutics is working towards developing an oral formulation of VK2735 that would eliminate the use of injections. The upcoming phase 2 results for this oral version are anticipated in the second quarter of 2025, further strengthening Seedhouse’s buy recommendation. He believes that merely advancing the injectable version would significantly increase the stock’s value.
Evaluating the Investment Potential of Viking Therapeutics
What drives Seedhouse’s enthusiasm for VK2735? The analyst suggests that its formulation surpasses that of Eli Lilly‘s (LLY 1.18%) tirzepatide notably in terms of potency. Reports from TheFly.com state that Seedhouse expects VK2735 to outperform Lilly’s Zepbound and Mounjaro. He asserts that if his predictions hold true, the drug is poised to achieve “multi-blockbuster” status in the market.
However, until concrete clinical trial data is released, the potential for VK2735 to be a commercial success—and for Viking Therapeutics’ stock to rise as anticipated—remains uncertain. As always in the stock market, investing involves risks, and one must weigh their options carefully.
In conclusion, it may be wise to regard this stock as speculative while maintaining a diversified investment strategy.
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