Should You Buy Viking Therapeutics Stock on the Dip? Wall Street Is Screaming "Yes."
Wall Street analysts are highly bullish on Viking Therapeutics, not least because of its promising weight-loss drug, with ongoing and upcoming phase 3 trials.
Overview
Following an excellent run in June, when the stock rose by more than 19%, Viking Therapeutics (NASDAQ: VKTX) stock recently dipped, potentially creating a buying opportunity for an exciting growth stock with huge potential in the weight-loss drug sector. Is the dip enough to make the stock a buy?
According to Visible Alpha, the Wall Street consensus price target for the stock is just below $91, representing a potential 150% return from the current price. The analyst's excitement about the stock stems from its lead drug candidate, VK2735, and its potential in the highly lucrative weight-loss market.
Details
VK2735 is being developed as a dual formulation therapy, whereby, for example, it can be initially taken by injection (subcutaneously) and later in oral form as a maintenance dose or to continue weight loss. Investors are also hoping the promising efficacy data (VK2735 appears to have a steeper velocity of weight loss than rival drugs) from the phase 2 trials (oral and subcutaneous) will be repeated in phase 3 trials. The subcutaneous phase 3 trial is in progress, while the oral phase 3 trial will begin in the fourth quarter of this year.
Source
Originally published at www.fool.com.