Market Overview

William Blair Initiates Viking With An Outperform Rating After Competitor Proves Strategy


The Rating

William Blair analyst Andy Hsieh initiated coverage on Viking Therapeutics Inc (NASDAQ: VKTX) with an Outperform rating.

The Thesis

Hsieh doesn't consider the stock reflective of the potential of VK2809 and VK5211.

“We are initiating coverage of Viking Therapeutics with an Outperform rating based on our view that the company’s wholly owned, differentiated assets—targeting significant unmet medical needs in the metabolic and endocrine space—are underappreciated by the Street,” Hsieh wrote in a note.

VK2809’s data, coupled with success in Madrigal Pharmaceuticals Inc (NASDAQ: MDGL)’s similar MGL-3196, is seen to validate the candidate’s potential.

“Based on its pleiotropic actions and benign safety profile, we believe VK2809 is uniquely positioned for treating fatty liver disease or nonalcoholic steatohepatitis,” Hsieh wrote.

At the same time, VK0214’s preclinical data indicated potential to treat an orphan neurodegenerative diseases, X-linked adrenoleukodystrophy.

VK2809 is expected to release Phase 2 data in the second half of this year, and Viking will also pursue partnership opportunities and consult the Food and Drug Administration about its VK5211.

Price Action

Shares of Viking Therapeutics closed Monday's session at $4.12, up 3.7 percent.

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Latest Ratings for VKTX

Mar 2019Raymond JamesMaintainsStrong BuyStrong Buy
Dec 2018B. Riley FBRInitiates Coverage OnBuy
Nov 2018Raymond JamesUpgradesOutperformStrong Buy

View More Analyst Ratings for VKTX
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Posted-In: Andy Hsieh William BlairAnalyst Color Initiation Analyst Ratings


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