Viking Therapeutics, Inc. (VKTX): A Bull Case Theory

We came across a bullish thesis on Viking Therapeutics, Inc. on Value investing subreddit by Remarkable-Ad5326. In this article, we will summarize the bulls’ thesis on VKTX. Viking Therapeutics, Inc.'s share was trading at $25.27 as of September 9th.

Viking Therapeutics (VKTX), a $3 billion pharma company, is emerging as one of the most mispriced stocks in the market, with its lead candidate VK2735, an oral weight loss pill, at the center of the bull case. The stock has a high short interest of 27% with days to cover near a week, creating conditions for a potential squeeze if retail attention converges on it.

The scientific data adds weight to the story: in phase 2 trials, VK2735 delivered the same weight loss results in 13 weeks that Eli Lilly’s Orfoglipron achieved only after 70 weeks in its phase 3 program. With VKTX set to advance to phase 3, the drug could showcase even stronger efficacy over longer timelines. Unlike Lilly, which has not disclosed its short-term efficacy data, Viking’s results position it as a potential disruptor in the GLP-1 weight loss drug race.

Despite its $3 billion market cap, Viking trades at a fraction of peers; Lilly recently gained $30 billion in market value on its weight-loss announcement alone. Analysts at Raymond James, Oppenheimer, and Jefferies carry price targets above $120, compared to current levels in the mid-$20s, suggesting a multi-bagger rerating opportunity. Concerns about dropout rates in phase 2 appear overstated, as nausea is a common, manageable side effect in this drug class and can be addressed with slower titration in future trials.

Beyond fundamentals, Viking is widely viewed as a buyout target given the projected $50–100 billion GLP market by 2030, with even a third entrant poised to capture meaningful share. The ability of VK2735 to enable rapid initial weight loss with high doses and transition patients to oral maintenance regimens without injections makes it uniquely compelling. Taken together, VKTX offers asymmetric upside, with catalysts ranging from clinical milestones to M&A, and potential 5x returns over the next year.

Previously we covered a bullish thesis on Viking Therapeutics, Inc. (VKTX) by Kontra Investments in February 2025, which highlighted the obesity epidemic, the $100 billion market potential, and VK2735’s differentiated safety and dual formulation strategy. The company’s stock price has depreciated approximately 10.77% since our coverage as the thesis has not yet played out. Remarkable-Ad5326 shares a similar view but emphasizes valuation, short interest, and buyout potential.

Viking Therapeutics, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held VKTX at the end of the first quarter which was 42 in the previous quarter. While we acknowledge the potential of VKTX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.