William Blair analyst Andy Hsieh has reiterated their bullish stance on VKTX stock, giving a Buy rating on March 7.
Andy Hsieh has given his Buy rating due to a combination of factors related to Viking Therapeutics’ strategic manufacturing agreement with CordenPharma. This deal is pivotal as it significantly mitigates the supply chain risks associated with the production of VK2735, a concern that had previously impacted the stock’s performance. The agreement secures a substantial production capacity for various administration forms, including autoinjectors, vials/syringes, and oral tablets, ensuring Viking can meet potential future demand efficiently.
Moreover, while the $150 million prepayment to CordenPharma might seem like a considerable financial commitment, it is structured to be credited against future orders, thereby offsetting the immediate financial impact. Hsieh also addresses potential investor concerns regarding the deal’s effect on Viking’s acquisition prospects, arguing that securing a reliable supply chain is a prudent move regardless of any ongoing acquisition discussions. This strategic foresight and the potential revenue opportunities from the deal underpin Hsieh’s positive outlook on Viking Therapeutics’ stock.
In another report released on March 7, H.C. Wainwright also reiterated a Buy rating on the stock with a $102.00 price target.
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