Viking Therapeutics Inc (NASDAQ: VKTX) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company was at the center of coverage initiation with a highly trusted firm. Of course, the analyst coverage was positive, exciting investors and sending the stock on a run for the top. Today, we’ll talk about:
- The analyst coverage;
- what we’re seeing from the stock; and
- what we’ll be watching for with regard to VKTX ahead.
William Blair Initiates Coverage On VKTX
As mentioned above, Viking Therapeutics is having an overwhelmingly strong start to the trading session this morning after news broke that a highly trusted Wall Street firm has initiated analyst coverage on the stock. News is breaking early this morning that William Blair Analyst Andy Hsieh has initiated coverage on the stock. In his note, Hsieh gave VKTX an Outperform rating, signaling positive movement ahead.
In his note, the analyst pointed to the idea that the current price of the stock does not provide the real value of VK2809 and VK5211. In a statement, Hsieh had the following to offer with regard to VKTX:
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.
Based on its pleiotropic actions and benign safety profile, we believe VK2809 is uniquely positioned for treating fatty liver disease or nonalcoholic steatohepatitis…”
It’s also important to note that VKTX has a catalyst just around the corner. In fact, the company intends to release VK2809 data in the second half of this year. At the same time, the company is pursuing partnership opportunities and in consultation with the FDA surrounding VK5211.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. With news of a trusted analyst providing an overwhelmingly bullish opinion of the stock, it only makes sense that excited investors are sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:58), VKTX is trading at $6.95 per share after a gain of $1.98 per share (39.89%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on VKTX. In particular, we’re interested in following the story surrounding both VK2809 and VK5211. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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