Viking Therapeutics (VKTX, Financial) saw its share price rise by nearly 1.94% today, contrasting with a 0.2% decline in the S&P 500 index.
The increase followed a bullish research note from Oppenheimer's Jay Olson. Olson reiterated his buy recommendation and $138-per-share price target for Viking Therapeutics.
Viking Therapeutics has garnered attention for its investigational obesity drug, VK2735. The drug has shown promising efficacy in clinical trials, positioning it as a potential blockbuster in the GLP-1 therapy market. Currently approved GLP-1 drugs are administered via injection, but Viking is working on an oral formulation of VK2735.
Olson highlighted the potential for the oral form of VK2735 to be sold over the counter (OTC). He noted that OTC status could differentiate the product and extend its brand equity beyond patent expiry.
Delving into the stock analysis and valuation, Viking Therapeutics (VKTX, Financial) currently trades at $63.13 with a market capitalization of $6,994.56 million. Despite its strong financial strength, as indicated by its financial strength rank of 8, the company faces profitability concerns with a profitability rank of 2. Its price-to-book (P/B) ratio stands at 7.6.
One concerning note is the insider selling trend, with 10 insider selling transactions recorded over the past three months amounting to 532,807 shares sold. This could be indicative of internal lack of confidence.
However, Viking Therapeutics shows promise with its cash-to-debt ratio of 856.6, reflecting a robust financial position to cover outstanding debts. The company’s GF Score is 38, indicating potential, although risks remain high.
For a deeper analysis, you can refer to the GF Value page of Viking Therapeutics.
