1 Biotech Stock Down 52% That Could Soar by 233%, According to Wall Street
Last year, Viking Therapeutics (NASDAQ: VKTX), a mid-cap biotech, attracted the market's attention thanks to excellent midstage clinical trial results. The company's shares soared in late February 2024, but, unfortunately, they have been southbound since then. Viking Therapeutics stock is down 52% over the trailing-12-month period. However, many Wall Street analysts remain unashamedly bullish on the company.Viking's average price target of $99.29 (according to analysts tracked by Yahoo! Finance) implies an upside of about 233% from its current level. Is the Street right to place such high hopes on this company.Viking Therapeutics' leading candidate, VK2735, is a weight loss medicine. Many pharmaceutical giants are looking to enter this market after the success of leading anti-obesity drugs like Wegovy and Zepbound. One way for them to do so is to acquire a smaller company with promising assets in this area. Viking Therapeutics is a prime candidate, and if it does get acquired in the next year, it will be at a significant premium, likely more than double its current share price. However, recent developments make this scenario unlikely.Continue reading
Last year, Viking Therapeutics (NASDAQ: VKTX), a mid-cap biotech, attracted the market's attention thanks to excellent midstage clinical trial results. The company's shares soared in late February 2024, but, unfortunately, they have been southbound since then. Viking Therapeutics stock is down 52% over the trailing-12-month period. However, many Wall Street analysts remain unashamedly bullish on the company.
Viking's average price target of $99.29 (according to analysts tracked by Yahoo! Finance) implies an upside of about 233% from its current level. Is the Street right to place such high hopes on this company.
Viking Therapeutics' leading candidate, VK2735, is a weight loss medicine. Many pharmaceutical giants are looking to enter this market after the success of leading anti-obesity drugs like Wegovy and Zepbound. One way for them to do so is to acquire a smaller company with promising assets in this area. Viking Therapeutics is a prime candidate, and if it does get acquired in the next year, it will be at a significant premium, likely more than double its current share price. However, recent developments make this scenario unlikely.
