Viking Therapeutics (VKTX) Stock Can Volt Even Higher, Says Analyst
Viking Therapeutics (VKTX) shares skyrocketed over 280% year-to-date thanks to positive mid-stage results for the drug maker’s experimental nonalcoholic steatohepatitis (NASH) candidate VK2809. Most importantly, the drug seems to compare favorably to Madrigal’s MGL-3196 in terms of both safety and efficacy. VK2809 appears not only to be a viable NASH medicine, but it could be a best-in-class medicine to boot.
But can the stock keep flying high? H.C. Wainwright analyst Joseph Pantginis believes so. The analyst reiterates a Buy rating on VKTX, while lifting the price target to $31 (from $28), which represents a potential upside of nearly 100% from where the stock is currently trading. (To watch Pantginis’ track record, click here)
Pantginis wrote, “We discussed the next steps for VK5211 with management, and the message remains the same from the August 10, 2Q18 quarterly results call, with one primary change. Subsequent to the quarterly update, the company has had its Type C meeting with the FDA, and expects to provide the results from this meeting in early November to help define the clinical path forward. We would project that the primary discussion points revolved around endpoints for this unmet medical need and novel approach using a SARM. To this end, we would project that this iterative process is likely focusing on a set of endpoints that could include, in part, assessments of function, quality of life, and muscle mass. We look forward to the regulatory update next month. We believe that the feedback from the FDA linked with the positive randomized Phase 2 should offer up a compelling profile to both investors and potential partners for the drug. Viking has indicated that any subsequent studies would be best suited for a partner because of the size and scope of registration studies.”
Wall Street’s confidence on the biotech player speaks for itself; Viking has received a whopping 6 Buy ratings in the last six months. Meanwhile, the $28.60 price target suggests a potential upside of 78.5%, from the current share price. (See VKTX’s price targets and analyst ratings on TipRanks)