Viking Therapeutics (VKTX) is quickly emerging as one of the most promising biotech stocks in the small-cap Russell 2000 index. With Wall Street analysts projecting a potential upside of over 200%, the stock has captured the attention of growth-focused investors. Backed by a strong pipeline targeting obesity and liver diseases, Viking’s innovative therapies could pave the way for major breakthroughs and significant shareholder returns.
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VKTX’s Bullish Case
Viking Therapeutics is a clinical-stage biotechnology company focused on developing innovative therapies targeting metabolic and endocrine disorders. Their pipeline includes promising candidates for treating obesity, non-alcoholic fatty liver disease (NAFLD), and muscle wasting.
Understandably, clinical-stage biotech firms come with high risk. Their treatments might never make it through trials or reach the market, and even if they do, profits aren’t guaranteed. The company currently has no approved products and no revenue, and runs at a loss. During times of market uncertainty, investors often shy away from companies like this.
However, Viking Therapeutics stands out from many other biotech firms. It’s working on treatments for several major health issues, especially in areas where better options are needed. One key focus is weight loss, a market that’s been growing fast and still has a lot of room to expand. Viking’s top drug candidate, VK2735, targets both GLP-1 and GIP receptors, a combination found in Eli Lilly’s (LLY) Zepbound, the current market leader and only approved drug of its kind so far.
Additionally, the company is seeing encouraging results from its mid-stage program VK2809, aimed at treating metabolic dysfunction-associated steatohepatitis (MASH). For context, MASH is a liver disease linked to obesity and becoming increasingly common. While the FDA only approved the first treatment for MASH last year, more approvals are expected shortly.
Is Viking Therapeutics a Good Stock to Buy?
Viking Therapeutics stock carries high risk, making it unsuitable for cautious investors. However, for those comfortable with volatility, a small position could offer strong long-term upside while limiting potential losses if the company fails.
According to TipRanks, VKTX stock has received a Strong Buy consensus rating, with 13 Buys and one Hold assigned in the last three months. The average Viking Therapeutics stock price target is $90.7, suggesting a potential upside of nearly 217.32% from the current level.
Year-to-date, VKTX stock has declined by almost 30%.
