Maxim’s top analyst Jason McCarthy is out today with a bullish note on shares of Viking Therapeutics (VKTX), after the drug maker announced positive new findings from the company’s 12-week, Phase 2 clinical trial of VK5211 in patients who recently suffered a hip fracture. The results were presented as part of the oral plenary session of the American Society for Bone and Mineral Research (ASBMR) 2018 annual meeting.
The newly presented data demonstrated dose-dependent decreases in mean fat mass, coupled with dose-dependent increases in mean body weight following VK5211 treatment. Findings also demonstrated dose-dependent increases in 6-minute walk distance following VK5211 treatment, reaching a greater than 20-meter improvement over placebo at the study’s highest dose.
McCarthy commented, “5211 is P3-ready and Viking has stated previously that it would seek a partner. A partnership and the value of the 5211 asset, in our view, is not yet factored into VKTX shares, having been overshadowed by the NASH asset 2809 […] Viking raised $175M (gross) following the 2809 data readout and we estimate now has >$300M in cash on the balance sheet. In our view, Viking remains firmly in the driver’s seat, particularly around 5211 for which it can wait for the “right” deal/partner while the company advances its pipeline forward (i.e. 2809 in NASH).”
As such, McCarthy reiterates a Buy rating on Viking shares, with a price target of $28, which implies an upside of 70% from current levels.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, 5-star analyst Jason McCarthy has a yearly average return of 20.9% and a 56% success rate. McCarthy has a 384.3% average return when recommending VKTX, and is ranked #134 out of 4886 analysts.
When it comes to Wall Street’s bet, the odds are on this biotech player, with TipRanks analytics showcasing VKTX as a Strong Buy. Out of 6 analysts polled in the last 6 months, all 6 are bullish on Viking stock. With a return potential of nearly 74%, the stock’s consensus target price stands at $28.60. (See VKTX’s price targets and analyst ratings on TipRanks)