Viking Therapeutics: Analysts Project Stock Could More Than Double

A striking valuation gap has emerged for Viking Therapeutics. The biopharmaceutical company's shares currently trade below $40, yet the consensus price target from market analysts suggests the potential for gains exceeding 125%. This optimism is fueled by promising clinical data for its obesity drug candidate, VK2735, though significant hurdles remain, including costly late-stage trials and a notable level of short interest.

A key pillar in the investment thesis is the company's robust balance sheet. Viking Therapeutics holds approximately $714 million in cash and equivalents. This substantial war chest is critical for funding the advancement of its clinical pipeline, most importantly the development of VK2735.

Recent trial results have bolstered confidence. In studies, an oral formulation of the drug demonstrated double-digit percentage weight loss over a 13-week period. While these early data are a primary driver behind the bullish outlook, the path to regulatory approval and commercialization is expensive. The year 2026 is viewed as pivotal for proving the candidate's commercial viability, a process expected to consume significant financial resources.

Market Skepticism Contrasts with Bullish Targets

Despite the promising data, a segment of the market remains unconvinced. Short interest in Viking Therapeutics stands at approximately 22.86%, indicating that nearly a quarter of the market is betting on a decline, whether from clinical setbacks or a broader price correction.

Should investors sell immediately? Or is it worth buying Viking Therapeutics?

This skepticism exists alongside highly optimistic analyst projections. After closing a recent session at $38.55, the stock's average price target sits at $87.14. This implies a potential upside of 126.1% from current levels. Some weekend analysis has pointed to a potential accumulation zone between $30.00 and $37.25, where institutional investors might look to establish or add to positions, based on the view that the stock is undervalued relative to its pipeline potential.

Risks and Catalysts on the Horizon

Several key risks could impede the stock's path toward these lofty targets. The high level of short interest itself may act as a cap on upward momentum in the absence of new, positive catalysts. Furthermore, the competitive landscape for weight-loss therapeutics is intensely crowded, leaving little room for error in development.

Financing risk is another consideration. Should the costs of Phase III trials exceed the current $714 million cash reserve, the company may need to raise additional capital, potentially leading to shareholder dilution. The stock's ultimate performance is likely to be dictated by forthcoming clinical data readouts. Positive results could validate the bullish case and narrow the gap to analyst targets, while any disappointments would likely empower the short thesis.