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Following an excellent run in June, when the stock rose by more than 19%,Viking Therapeutics(NASDAQ: VKTX) stock recently dipped, potentially creating a buying opportunity for an exciting growth stock with huge potential in the weight-loss drug sector.
Is the dip enough to make the stock a buy? According to Visible Alpha, the Wall Street consensus price target for the stock is just below $91, representing a potential 150% return from the current price.
The analyst's excitement about the stock stems from its lead drug candidate, VK2735, and its potential in the highly lucrativeweight-lossmarket.
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Investors are also hoping the promising efficacy data (VK2735 appears to have a steeper velocity of weight lossthan rival drugs) from the phase 2 trials (oral and subcutaneous) will be repeated in phase 3 trials.
The subcutaneous phase 3 trial is in progress, while the oral phase 3 trial will begin in the fourth quarter of this year.
VK2735 is a potential game changer for the company, but risks remain, not least due to some questionable tolerability data from the phase 2 oral trial.
Moreover, the phase 3 results from the subcutaneous VK2735 trial won't be available until late 2027 at the earliest, and the oral 2735 phase 3 results aren't due until 2028.
That said, there is a phase 1 maintenance dosing trial (participants will take subcutaneous VK2735 for 19 weeks before switching to a range of subcutaneous and oral maintenance doses) in progress, with results from the subcutaneous period due in the current quarter and the oral maintenance results due in the first half of 2027.
Wall Street says "buy," but cautious investors may want to wait to monitor the maintenance trial results before buying in, as the phase 3 results won't come out for a while.
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