VKTX Stock Jumps 36% As Oppenheimer Hikes Target, Peers Call Data A Win

• Oppenheimer’s Jay Olson raised his target to $120 from $100 and kept an Outperform rating, saying the maintenance results backed “bullish expectations.”
• H.C. Wainwright’s Joseph Pantginis called the readout “highly encouraging.”
• Truist’s Gregory Renza labeled the package a “best-case scenario.”

Shares of Viking Therapeutics (VKTX) jumped on Tuesday after early data showed its experimental obesity injection, VK2735, kept most patients’ weight off when they took it every other week or once a month, sparking optimistic Wall Street commentary and a price target upgrade.

The San Diego company is trying to carve out a place beside Eli Lilly’s Zepbound and Novo Nordisk’s Wegovy with a dual GLP-1/GIP drug that can be given as a shot or, later, a pill. Shares rose as much as 38% before closing up 36%.

First Lose Weight, Then Stretch The Calendar

The Phase 1 study enrolled about 180 adults with obesity. For the first 21 weeks, everyone got a weekly injection. People on VK2735 lost about 16% to 19% of their body weight. People on placebo barely changed. The main 17.5 mg weekly dose produced a 17.7% drop.

A smaller group stayed on that weekly 17.5 mg shot through week 33. Those patients lost 21.7% from the start — about 22 percentage points more than placebo — and were still losing weight.

After week 21, other patients switched to a lighter schedule for 12 weeks. Those who moved to a shot every other week kept 83% to 97% of the weight they had already lost. Those who moved to a monthly shot kept 82% to 90%. Patients who switched to placebo kept only 61%.

Stomach side effects during that holding period looked similar to placebo, and few people dropped out. Viking said it still plans to test a pill for the same maintenance stretch.

Analysts Call The Package A Win

Oppenheimer’s Jay Olson raised his target to $120 from $100 and kept an Outperform rating, saying the maintenance results backed “bullish expectations.” He called the hold on two-week and monthly dosing impressive, said tolerability looked like placebo, lifted the drug’s chance of success to 90% from 80%, and argued VK2735 could offer several paths across shots and pills.

H.C. Wainwright’s Joseph Pantginis called the readout “highly encouraging,” citing strong first-phase weight loss, lasting hold on a lighter schedule, and “very encouraging” gut tolerability. He kept ‘Buy’ rating and a $102 target.

Morgan Stanley called the data “very positive,” noting the 17.5 mg weekly group cleared a 20% placebo-adjusted bar at week 33 with no plateau, plus up to 97% retention on two-week dosing and 90% on monthly shots. It kept ‘Overweight’ rating and a $95 target.

Truist’s Gregory Renza labeled the package a “best-case scenario.” The 17.5 mg start came in at 17.8%, the continued-weekly group reached 21.7% by week 33, and clean tolerability, he said, takes risk out of the step-down plan. Truist kept Buy and an $83 target.

How Did Retail Traders React?

On Stocktwits, retail sentiment around VKTX stock rose from ‘bullish’ to ‘extremely bullish’ over the past 24 hours, while message volume increased from ‘high’ to ‘extremely high’ levels.

A Stocktwits user voiced optimism for a buyout of VKTX.

Another user noted that Viking is late to the obesity drug market and that Novo and Eli Lilly are already selling drugs.

A third user opined that this is “just the tip of the iceberg” and voiced hopes for “great things ahead.”

VKTX stock has gained 16% year-to-date. 

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