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Viking Therapeutics saw its stock rise by 11% over the last week, coinciding with significant developments in its clinical trials. The company's completion of subject enrollment for the Phase 2 clinical trial of VK2735, targeting weight loss, and promising results from earlier phases have bolstered investor confidence, contributing to the stock's positive movement. The recent announcements about both oral and subcutaneous formulations underscore the potential of VK2735. With the broader market remaining flat during this period, these developments likely provided additional momentum to Viking's notable stock performance.
Over a three-year period, Viking Therapeutics' stock has delivered a total return exceeding 500%, showcasing its robust performance for long-term investors. This substantial return contrasts with its recent underperformance against both the US market and the US Biotechs industry over the past year. The recent surge in Viking's stock price, following key clinical trial milestones for VK2735, underscores investor optimism. However, the company remains unprofitable, with a net loss of US$109.96 million in 2024, and is not expected to achieve profitability in the next three years.
The advancements discussed could potentially drive future revenue growth, as indicated by a forecasted annual revenue increase of 67%. However, earnings are expected to decline by 4.6% annually for the next three years. Despite the current price discount relative to the consensus analyst price target of US$95.44, analysts remain divided in their opinions on Viking's prospects, as seen in the significant gap between the share price and price target. This difference highlights uncertainty around the company's ability to convert its clinical successes into financial performance, especially while maintaining high CEO compensation and falling short in industry benchmarks.
Examine Viking Therapeutics' earnings growth report to understand how analysts expect it to perform.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.