B.Riley FBR Thinks Viking Therapeutics’ Stock is Going to Recover


In a report released today, Mayank Mamtani from B.Riley FBR reiterated a Buy rating on Viking Therapeutics (VKTX), with a price target of $16. The company’s shares closed yesterday at $7.78, close to its 52-week low of $6.97.

Mamtani wrote:

“We recently hosted an NDR with Viking Therapeutics, Inc. (VKTX) CEO Brian Lian and came away with a better appreciation for its ongoing preclinical and clinical development efforts in NASH. The 2019 YTD stock performance remains challenging (+2%, vs. 20% for XBI) in spite of VKTX continuing to validate best-in-class efficacy in liver fat reduction for its lead drug, VK2809. We argue the cautious investor outlook towards the imminent VK2809 IND filing catalyst on the basis of a “safety overhang,” also reflected in nearly 30% short interest, and continue to believe in totality of evidence supporting the most favorable outcome of FDA allowing VKTX to proceed to a Ph. II trial in biopsy-proven NASH that also has underlying cardiovascular disease.”

According to TipRanks.com, Mamtani has 0 stars on 0-5 star ranking scale with an average return of -10.4% and a 26.3% success rate. Mamtani covers the Healthcare sector, focusing on stocks such as Spring Bank Pharmaceuticals Inc, Arbutus Biopharma Corporation, and Madrigal Pharmaceuticals Inc.

Viking Therapeutics has an analyst consensus of Strong Buy, with a price target consensus of $22.33, implying a 187.0% upside from current levels. In a report issued on July 15, Oppenheimer also initiated coverage with a Buy rating on the stock with a $12 price target.

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Based on Viking Therapeutics’ latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $4.92 million. In comparison, last year the company had a GAAP net loss of $6.67 million.

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Viking Therapeutics, Inc. is a clinical-stage biopharmaceutical company, which engages in the development of novel therapies for patients suffering from metabolic and endocrine disorders. The company’s clinical program VK5211, treats patients recovering from non-elective hip fracture surgery. It also specializes in development of VK2809 and VK0214.

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