3 Wall Street Analysts Think Viking Therapeutics Stock Will Roughly Triple Over the Next 12 Months. Here's Why I Think They're Wrong
2026-09-03 20:30
•Prosper Junior Bakiny •The Motley Fool
•• • Axe Cap view
Why Viking Therapeutics’ Triple Target Is Too Rosy
Viking Therapeutics faces steep clinical and valuation hurdles despite analyst optimism.
Three Wall Street analysts see Viking Therapeutics' shares tripling, mostly on hopes for its weight-loss drug VK2735. The drug’s promise lies in an oral GLP-1/GIP agonist combo, a real advantage if Phase 3 trials hit 23-26% mean weight loss. That’s a high bar, and any hiccup could cause a sharp selloff. Biotech bets like Viking can pay off big, but here the risk-reward feels lopsided. For JSE investors, it’s a reminder: speculative plays with big potential gains often come with scenario outcomes that are binary — significant upside or painful downside. Given the rand’s usual volatility against the dollar, any US biotech disappointment could weaken the USD/ZAR further and hurt appetite for riskier global assets. Unless you’re comfortable with that, consider watching from the sidelines. this is just our opinion and not financial advice
Avoid buying Viking Therapeutics for now; let clinical data prove it out before considering exposure. Focus on more established JSE counters or USD/ZAR plays for steadier risk profiles.
- VKTX
- USD/ZAR
- VK2735 Phase 3 trial failure or underperformance
- Broader biotech selloffs impacting risk appetite and USD/ZAR volatility
4/10
While three Wall Street analysts have bullish $100 price targets on Viking Therapeutics (implying a tripling), the author argues this is overly optimistic. Viking's weight-loss drug VK2735 would need near-flawless phase 3 data showing 23-26% mean weight loss to justify such gains, and any clinical setback could sink the stock. The author recommends only risk-tolerant investors consider a small position.
Our take is based on reporting first published by The Motley Fool.
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