Viking Therapeutics’ (VKTX) stock price rose ~101% on May 31 following the successful trial results of Madrigal Pharmaceuticals’ (MDGL) NASH drug. Madrigal Pharmaceuticals’ drug has a similar mechanism of action as Viking Pharmaceuticals’ NASH drug. In this part, we’ll discuss Wall Street analysts’ recommendations for Viking Therapeutics stock in the next 12 months.
As of June 1, according to a recent Reuters survey that consisted of five brokerage firms that cover Viking Therapeutics stock, one firm has a “strong buy” rating on the stock, while the other firms have a “buy” recommendation on Viking Therapeutics. Wall Street seems to be bullish on the stock’s growth prospects in the next 12 months.
Maxim raised its target price
On May 31, Maxim Group raised its target price for Viking Therapeutics from $8 to $14. Maxim analyst Jason McCarthy is largely bullish on Viking Therapeutics stock. After the news of the positive results from Madrigal Pharmaceuticals’ NASH drug, McCarthy said, “The Madrigal data, in our view, suggests that this class of drug may be successful as a treatment for NASH. We have reduced the risk factor in our model from 90%, to 50%, as well as made some other minor adjustments.” He added that Madrigal Pharmaceuticals’ positive data suggest that Viking Pharmaceuticals’ NASH drug trial might yield similar results.
On June 1, Viking Therapeutic had a consensus 12-month target price of $10.63, which implies a 12-month investment return potential of ~4.7%. The return is based on Viking Therapeutics stock’s closing price of $9.9 on May 31.
Madrigal Pharmaceuticals and Intercept Therapeutics (ICPT) had average target prices of $267.00 and $106.69, respectively. These target prices imply 12-month returns of 0.52% and 52%, respectively.