UBS Initiates Coverage on Viking Therapeutics with Buy Rating and $94 Price Target
UBS has initiated coverage of Viking Therapeutics (VKTX) with a 'Buy' rating and a 12-month price target of $94, implying significant upside from current trading levels. The bullish outlook is driven by the potential efficacy of VK2735, an experimental dual GLP-1 and GIP receptor agonist designed for weight loss. Clinical data suggests VK2735 could potentially outperform existing market leaders like Eli Lilly's tirzepatide and Novo Nordisk's semaglutide in terms of total weight reduction. Viking is advancing its pipeline through late-stage studies, including the Phase 3 Sunrise clinical program for an oral version of VK2735. While the company remains a clinical-stage biotech without approved commercial products, it has significantly strengthened its balance sheet. Following a recent financing round, Viking reported approximately $960 million in cash and short-term investments as of September 30.