Wall Street Says Buy the Dip in Viking Therapeutics. Here's the Bull Case
The stock looks like a high-risk, high-reward play.
Overview
Shares of Viking Therapeutics (NASDAQ: VKTX), a clinical-stage biotech, have declined by 46% over the past two years. There are several reasons for this. First, longtime shareholders decided to pocket some profits after Viking Therapeutics reported excellent mid-stage results for its leading candidate, subcutaneous VK2735, an investigational weight-management medicine. Second, the drugmaker's phase 2 results for an oral formulation of VK2735 were somewhat disappointing due to high discontinuation rates linked to side effects.
However, Wall Street still has high hopes for Viking Therapeutics. The company's average price target of $92.58 (according to Yahoo! Finance) implies a nearly 161% upside from current levels. Why is the Street so bullish on Viking Therapeutics' prospects? Here's the bull case for the stock.
Image source: The Motley Fool.
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Originally published at www.fool.com.