This Weight Loss Stock Could Soar Over 220%, According to Wall Street. Time to Buy?

Core Viewpoint - Wall Street is optimistic about Viking Therapeutics, a development-stage pharmaceutical company focusing on GLP-1 receptor agonists, with a significant price target suggesting over 220% upside potential from current share prices [2][3]. Company Overview - Viking Therapeutics is currently trading at approximately $34, with a consensus price target of $110 among analysts, indicating a potential market capitalization of around $12 billion if achieved [2][8]. - The company is developing VK2735, a dual GLP-1/GIP agonist aimed at treating obesity, with ongoing clinical studies including an oral tablet version [3][4]. Market Context - The GLP-1 market is dominated by Novo Nordisk and Eli Lilly, which are investing in next-generation medications, including oral formulations [6]. - Viking's potential entry into the market with an oral version of VK2735 could attract patients who prefer non-injection treatments [4]. Clinical Development - Viking is in the early stages of a 13-week phase 2 trial for the oral form of VK2735, which is seen as a significant step forward [4]. - Despite encouraging data from clinical trials, the company faces challenges in obtaining FDA approval and subsequently scaling production and marketing [5][6]. Acquisition Potential - Analysts suggest that Viking could be an acquisition target, with a potential buyout valuation of around $15 billion [7]. - Comparatively, Eli Lilly's Mounjaro and Zepbound are projected to generate $14.7 billion in combined sales for 2024, indicating the competitive landscape [8]. Stock Performance - Viking's stock has increased by 58% over the past year, outperforming the S&P 500 and Nasdaq Composite [9]. - Recent downward trends in stock performance suggest it may have been overbought earlier in 2024 [10]. Investment Considerations - The stock is viewed as a speculative opportunity, with significant unknowns regarding clinical trial outcomes and market entry timelines [11]. - Investors are advised to consider their risk tolerance before investing, as established companies like Novo Nordisk and Eli Lilly may offer more stability [12].