Viking Therapeutics Inc (NASDAQ:VKTX) is scaling the Nasdaq Composite (IXIC) this morning, up 28% at $38.63, at last check. The drugmaker's obesity drug VK2735 maintained weight loss by 97% in a maintenance study. Sector peers Eli Lilly (LLY) and Novo Nordisk (NVO) are 1.1% and 0.8% lower in response, respectively, as Viking now becomes a legitimate challenger to their weight-loss monopoly.
Yesterday, VKTX snapped a nine-day losing streak that had the shares trading at their lowest level since early June. Now, that gap has been filled, while the year-to-date breakeven level has been cleared as well.
Don't expect much attention from analysts, considering 17 of the 20 maintain "strong buy" ratings, while the consensus 12-month price target of $94.76 is a 148.7% premium from last night's closing perch at $30.11.
A short squeeze could be in play. Short interest tapered off in the most recent reporting period, yet the 22.19 million shares sold short account for 19.6% of VKTX's total available float. At the stock's average pace of trading, it would take shorts 10 trading days to buy back their bearish bets.
