The stock of pharmaceutical company and weight loss drug maker Viking Therapeutics (VKTX) could rise 200% and challenge market leaders Novo Nordisk (NVO) and Eli Lilly (LLY), say analysts at Jefferies Financial Group (JEF).
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Analyst Roger Song says Viking Therapeutics is one of the pharma companies best positioned to challenge the dominant players when it comes to the weight loss drug market. The company has an injectable weight-loss treatment starting late-stage clinical trials this year, as well as an oral candidate in mid-stage trials.
Given its product pipeline, Song has set a Buy rating on VKTX stock with a $110 price target, which is nearly 225% higher than where the shares currently trade. Song notes that weight loss drugs taken orally rather than by injection are widely considered to be the next big hill to climb for pharmaceutical companies and are in high demand from patients looking to maintain their weight loss long term.
A Takeover Target
An added reason to be bullish on VKTX stock, notes Song in his forecast, is that the company is widely viewed on Wall Street as a potential takeover target. Larger and more established pharma companies, such as Pfizer (PFE), that want to get into the weight loss drug business may buy Viking Therapeutics to get their hands on the company’s weight loss pill, says Song.
Song and his colleagues at Jefferies aren’t the only analysts that are bullish on VKTX stock. Investment bank Morgan Stanley (MS), and many others, have also put out bullish reports on Viking Therapeutics in recent months, also noting the company’s potential as a takeover target.
VKTX stock has risen 57% in the last 12 months.
Is VKTX Stock a Buy?
The stock of Viking Therapeutics has a consensus Strong Buy rating among 13 Wall Street analysts. That rating is based on 13 Buy recommendations assigned in the last three months. There are no Hold or Sell ratings on the stock. The average VKTX price target of $112.18 implies 232% upside from current levels.
