An analyst at the banking giant Truist Financial has an $83 price target on Viking Therapeutics (VKTX 3.70%), which is particularly notable given that Viking opened at $28.75 per share on June 8. If it reached that target from that June 8 opening price, that would be a gain of 188%.
The clinical-stage company lacks commercial products, but it has a promising weight-loss drug candidate, VK2735, in phase 3 trials. The rewards for getting the drug to market could be substantial, which the bold price target reflects. But so too are the risks for investors.
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The upside potential of Viking Therapeutics
While there has been previous disappointment with trial results from Viking, the analyst from Truist views the company as a differentiated drugmaker in the space. Its injectable version in particular has been highlighted for its potential to provide both weight loss and favorable tolerability, which could help it stand out in a market that's growing but also increasingly crowded.
Researchers at Morgan Stanley project that the global market for drugs to treat obesity will grow from around $15 billion in sales in 2024 to $150 billion by 2035. Viking Therapeutics is gearing up to grab a slice of that potential cash pile, developing VK2735 in both oral and injectable forms. Currently, phase 3 for the injectable is in process, while the oral solution is expected to enter phase 3 in the third quarter of 2026, which is just around the corner.
The trials for both versions of VK2735 are evaluating its effectiveness as an obesity treatment. But getting it approved for one condition can be just the first step toward maximizing its sales potential, because weight loss drugs are being approved for uses beyond treating obesity. According to Motley Fool research on longevity investing:
GLP-1 drugs are expanding from weight loss into longevity territory. GLP-1s are a class of drugs that includes semaglutide, sold as Wegovy and Ozempic, and tirzepatide, sold as Zepbound and Mounjaro. Originally approved for diabetes and obesity, they have since received FDA [Food and Drug Administration] approval for cardiovascular risk reduction, obstructive sleep apnea, fatty liver disease, and oral obesity treatment.
NASDAQ: VKTX
Key Data Points
The upside is there, but so are plenty of risks
The $83 price target from Truist makes Viking Therapeutics an enticing investment idea. But that upside also needs to be paired with the understanding that this stock carries significant risks. As a clinical-stage company, Viking is currently not generating any revenue.
If there are any issues in the trials for either version of VK2735, it will be a huge setback, removing the chance to get a revenue generator out the door. That's particularly important as losses mount. In 2024, Viking reported a net loss of $109 million, which climbed to $359 million in 2025. The company still has some runway, with $603 million in cash, cash equivalents, and short-term investments as of the end of March. That said, since it had $706 million at the end of 2025, it burned through $103 million in just three months.
There's a potential $150 billion market for Viking Therapeutics to capture, but investors will face significant volatility as they wait for it to receive approval to launch its first commercial product. The biggest risk is that such an approval may not arrive.
