UBS Raises PT to $69 for Viking, Maintains Buy Rating

UBS Raises PT to $69 for Viking, Maintains Buy Rating

UBS Group AG analyst Anke Reingen has revised the price target for Viking Therapeutics (NASDAQ: VKTX) to $69, while maintaining a Buy rating on the stock. This update comes amidst mixed market reactions to Viking's Phase 2 trial results for its obesity treatment VK2735 [1].

The recent Phase 2 trial results showed promising efficacy with an average weight loss of 12.2% from baseline at 13 weeks. However, the stock experienced a decline following the announcement, attributed to concerns about tolerability and gastrointestinal adverse events reported during the trial [1]. Analysts have noted that these side effects were most prominent during the initial weeks of treatment and may be mitigated with a slower titration approach in future studies.

Viking's results have been compared to those of competitors like Eli Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO), with some analysts pointing out that Viking's Phase 2 data may not be directly comparable due to differences in trial designs and durations [1]. Despite these comparisons, Viking's stock has seen a 30% surge in the past six months, although it remains below its fair value according to InvestingPro data [1].

The upcoming trial will likely be a Phase 2b or Phase 3 study, with potential refinements to dosing regimens to address tolerability concerns. Viking Therapeutics maintains a strong financial position with a healthy current ratio and more cash than debt on its balance sheet [1].

In other recent news, RBC Capital analyst Anke Reingen maintained a Buy rating on UBS Group AG with a price target of CHF34.00, while DZ BANK AG's Philipp Haessler also issued a Buy rating for the company. However, Morgan Stanley maintained a Sell rating on UBS Group AG [2].

References:
[1] https://www.investing.com/news/analyst-ratings/viking-therapeutics-stock-falls-as-market-weighs-phase-2-weight-loss-data-93CH-4200506
[2] https://www.theglobeandmail.com/investing/markets/stocks/UBS/pressreleases/34171520/rbc-capital-sticks-to-its-buy-rating-for-ubs-group-ag-ubs/