Viking Therapeutics Stock Down Over 20% In 2025: Retail Traders Predict Where It Could End The Year

Viking Therapeutics has faced a tough start to 2025, with its shares down more than 22% as of Thursday’s close.

On Wednesday, the San Diego-based clinical-stage biopharmaceutical company reported a fourth-quarter loss of $0.32 per share, which was wider than the expected $0.27. 

Viking is still in the development phase and has yet to generate revenue, a common scenario for small- and mid-cap biotech startups.

As of Dec. 31, 2024, Viking had $903 million in cash and investments, which it says will help it achieve critical clinical milestones, including completing Phase 3 trials for its subcutaneous version of VK2735, an obesity therapy.

In a recent Stocktwits poll, retail traders were asked for their stock price expectations for Viking by the end of 2025. 

A significant 35% of the poll respondents believe the stock will close below $30, while 32% expect it to rise above $80, a level last seen in late October. 

Meanwhile, 18% anticipate the stock will end the year between $50 and $80, and 15% see it landing between $30 and $50.

In 2024, Viking reported positive results from four different clinical trials, including a Phase 2 study for subcutaneous VK2735, a Phase 1 trial of an oral tablet form of VK2735, a Phase 2b study for VK2809 to treat metabolic steatohepatitis (MASH) and fibrosis, and a Phase 1b study of VK0214 for X-linked adrenoleukodystrophy. 

However, there is growing concern over increased competition in the weight-loss drug market, with Novo Nordisk and Eli Lilly dominating the sector.

William Blair and Oppenheimer analysts have speculated that Viking could be an acquisition target for a larger company. 

This premise gained momentum earlier this week when Novartis CEO Vas Narasimhan revealed that the company is seeking next-generation obesity drug candidates. 

Shares of Viking spiked on the news, despite Novartis’s own obesity program being in the early stages of development, with no human clinical trials yet.

Retail traders on Stocktwits are also bullish on the possibility of a merger or acquisition, especially as Viking’s shares have fallen by over 50% in the past three months. 

Notably, short interest on Viking has surged from 11.9% in mid-November to over 18% by the end of January.

Wall Street’s average price target for Viking is $105.73, representing an upside of more than 230% from current levels.

Morgan Stanley analysts, in a note on Thursday, said that after meeting with Viking's management, the company remains confident in securing a commercial manufacturing contract for subcutaneous VK2735, supporting a multibillion-dollar opportunity.

The brokerage reiterated its 'Overweight' for the stock and its price target of $105.

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