1. Viking Therapeutics, Inc. (NASDAQ:VKTX)
Average Analyst Price Target Upside: 84.08%
Stock Price Performance YTD: 238.79%
Number of Hedge Fund Holders: 50
Viking Therapeutics, Inc. (NASDAQ:VKTX) is a clinical-stage biopharmaceutical company and the top stock on our list of the best performing long term stocks in 2024. Currently, it is advancing two promising drug candidates, VK2809 and VK2735, which could address major health challenges.
VK2809 is being investigated as a treatment for non-alcoholic steatohepatitis (NASH), a liver condition marked by fat accumulation that can result in inflammation and scarring. The disease affects a substantial number of people and can lead to severe liver damage if not addressed. The clinical trials for VK2809 aim to determine its effectiveness in managing NASH, which can possibly position the drug as a potential game-changer in a market that desperately needs effective therapies. On the other hand, VK2735 targets specific receptors in the body to tackle obesity and related metabolic issues.
Viking Therapeutics (NASDAQ:VKTX) has Buy ratings from 14 analysts. As of September 24, the average price target of $114.00 represents an upside of 84.08% from the current levels. Recent analysis from Morgan Stanley on September 12 suggest that VK2735 may have a tolerability edge over Roche’s CT-996 oral weight loss drug, particularly following presentations at the European Association for the Study of Diabetes annual meeting.
The firm is looking forward to updated Phase 1 data for VK2735, which is expected to be released at Obesity Week in early November. The data is expected to highlight enhanced weight loss and a favorable safety profile, which reaffirms the notion that VK2735 could emerge as a leader in the obesity treatment space.
The firm reiterated an Overweight rating and $105 price target on Viking Therapeutics (NASDAQ:VKTX). The positive sentiment is driven by the belief that VK2735 possesses “best-in-class potential.” As the company progresses through its clinical trials and approaches key data releases, it may attract increased attention from investors and stakeholders alike.
In Q2, 50 hedge funds held stakes in Viking Therapeutics (NASDAQ:VKTX), with positions worth $479.083 million. As of the second quarter, Viking Global is the most significant shareholder in the company. The firm has increased its stake in the company by 24% to 1.35 million shares worth $71.8 million.
Fred Alger Management stated the following regarding Viking Therapeutics, Inc. (NASDAQ:VKTX) in its Q2 2024 investor letter:
“Viking Therapeutics, Inc. (NASDAQ:VKTX) is a clinical-stage biopharmaceutical company focused on developing novel therapies for patients suffering from metabolic and endocrine disorders. Their lead drug VK2809, a beta-selective thyroid hormone receptor agonist, is in development for nonalcoholic steatohepatitis and nonalcoholic fatty liver disease. Their VK2735 drug is a GLP-1 dual agonist being developed for patients with obesity. During the quarter, the company’s shares were negatively impacted by several factors: 1) a challenging environment for biotechnology stocks, exacerbated by Fed policy decisions to maintain elevated interest rates, 2) increased competition in the obesity treatment landscape, 3) manufacturability and scalability concerns regarding Viking’s obesity drug and 4) the absence of strategic partnerships from large pharmaceutical companies. Despite the challenging quarter, we continue to believe that the company’s GLP-1 drug has the potential to be a best-in-class obesity drug given its favorable efficacy and safety profile. Further, with approximately one-third of U.S. adults suffering from obesity, we believe the company’s GLP[1]1 drug has the potential to address a large market once approved.”
While we acknowledge the potential of Viking Therapeutics, Inc. (NASDAQ:VKTX) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is promising and trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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