© Reuters. Jefferies starts Viking Therapeutics (VKTX) at buy on ‘scarcity value’
Jefferies initiated Viking Therapeutics (NASDAQ:) with a Buy rating and $110 per share price target in a note Thursday, telling investors the company is a strong mid-stage obesity player with scarcity value.
VKTX is developing subQ/oral VK2735 (GLP-1/GIP) for obesity, and analysts believe the company shines with its recent strong Phase 2 data.
It is “enjoying scarcity value in the obesity space as demand for more mature/de-risked assets outstrips supply,” wrote Jefferies.
Furthermore, the firm believes the company is “well-positioned heading into oral VK 2735 readout in 1Q24, although the expectation is likely raised with impressive subQ data.”
Despite the positives for VVKTX, the stock is down sharply Thursday after Novo Nordisk unveiled data for its experimental obesity drug that suggested it was more effective than its blockbuster Wegovy therapy.
