Viking Therapeutics stock maintains Buy rating at Stifel on obesity drug potential

Viking Therapeutics (VKTX) received reiterated Buy ratings and high price targets from Stifel ($95), Cantor Fitzgerald ($104), and H.C. Wainwright ($102), despite reporting a larger-than-expected Q2 2025 loss of -$0.58 EPS driven by increased R&D expenses. Analyst confidence stems from rapid enrollment in the Phase 2 VENTURE-Oral trial for its oral VK2735, the initiation of the Phase 3 VANQUISH program for the injectable version, and a robust financial position with $808 million in cash providing runway through multiple key data events expected through H2 2025.

Analysis

Viking Therapeutics (VKTX) maintains strong analyst support despite a wider-than-expected Q2 2025 loss. Stifel, Cantor Fitzgerald, and H.C. Wainwright have all reiterated Buy or Overweight ratings with price targets ranging from $95 to $104, citing progress in the company's obesity drug pipeline. This confidence is rooted in the rapid enrollment for the Phase 2 trial of its oral formulation, VK2735, and the recent initiation of the Phase 3 VANQUISH program for the injectable version. The reported earnings per share of -$0.58, which missed the -$0.44 consensus, was directly attributable to research and development expenses that surpassed expectations by over 43% ($60.2 million vs. an anticipated $42.04 million), signaling an acceleration of its clinical programs. Financially, the company appears well-capitalized with $808 million in cash, providing a runway through multiple data events, including the key oral data expected in the second half of 2025. The significant gap between the current share price of $33.50 and the analyst target range, which extends up to $125, highlights the market's view of VKTX as a high-potential but high-risk, event-driven asset.

Key Decisions for Investors

• Investors should recognize VKTX as a speculative, catalyst-driven investment where potential returns are contingent on positive clinical trial outcomes for its VK2735 obesity drug, with the H2 2025 oral data release being a pivotal event.
• The recent earnings miss, caused by accelerated R&D spending, may be interpreted as a positive strategic investment in the pipeline's progress rather than an operational deficiency, but the cash burn rate should be monitored closely against the stated $808 million runway.
• Given the significant disparity between the current stock price and bullish analyst targets, investors should anticipate high volatility and consider the stock's risk profile, as its valuation is heavily tied to future binary clinical events.