Michael Ulz, an analyst from Morgan Stanley, maintained the Buy rating on Viking Therapeutics (VKTX – Research Report). The associated price target remains the same with $105.00.
Michael Ulz has given his Buy rating due to a combination of factors surrounding Viking Therapeutics’ strategic moves. The company has recently announced a significant long-term manufacturing agreement with CordenPharma, a reputable supplier known for its expertise in peptide production. This deal secures the necessary capacity for both injectable and oral formulations of VK2735, which is crucial for addressing the current supply shortages in the market.
The agreement is particularly advantageous as it includes dedicated manufacturing lines and a substantial supply commitment, positioning Viking Therapeutics to capitalize on a multibillion-dollar market opportunity. Additionally, the prepayment terms, which will be credited against future orders, provide financial flexibility. These strategic decisions, coupled with the upcoming clinical trial milestones, underpin Ulz’s confidence in the company’s growth potential, leading to the Buy rating.
In another report released yesterday, B.Riley Financial also maintained a Buy rating on the stock with a $96.00 price target.
VKTX’s price has also changed dramatically for the past six months – from $60.830 to $26.520, which is a -56.40% drop .