Viking Therapeutics (VKTX) has become a focal point for biotech investors after moving its obesity drug VK2735 into Phase 3 trials, with enrollment in key subcutaneous and oral studies largely completed or close to completion.

The recent decision to advance VK2735 into Phase 3 comes after a strong run in the shares, with a 30 day share price return of 22.86% and a 1 year total shareholder return of 15.34%. The 3 year total shareholder return is about 3x, which suggests momentum has picked up again following a softer 90 day share price return that declined by 1.44%.

If obesity drug progress has caught your attention and you want to see what else is available, our screener of 33 healthcare AI stocks is a useful next stop.

With VK2735 now in Phase 3 and the share price already up strongly over the past few years, the key question for you is whether Viking is still trading at a discount or whether the market is already pricing in future growth.

Most Popular Narrative: 61.6% Undervalued

According to the most followed valuation narrative, Viking Therapeutics' fair value of $92.72 sits well above the last close at $35.63, which puts a lot of focus on how VK2735 and the broader pipeline might reshape the company’s future earnings profile.

Parallel development of subcutaneous and oral formulations of the same GLP-1 and GIP co agonist, including plans to start Phase III oral trials and an oral maintenance strategy, directly responds to rising patient interest in flexible obesity treatment options and could support broader market reach and future earnings growth.

Want to see what kind of revenue ramp and margin shift sit behind that fair value? The narrative leans on a sharp earnings swing and a future profit multiple that stands far above typical biotech names. Curious which specific timeline and growth assumptions are doing the heavy lifting here? The full narrative lays it out in detail.

Result: Fair Value of $92.72 (UNDERVALUED)

However, you still need to weigh real risks, including Viking’s clinical stage status, its US$359.6 million net loss, and its heavy dependence on VK2735’s Phase 3 outcomes.

Next Steps

The mix of optimism and concern around Viking might feel finely balanced right now. Move quickly, review the numbers yourself and decide where you stand, and then see how that stacks up against our breakdown of 1 key reward and 3 important warning signs.

Looking for more investment ideas?

If Viking has sparked your interest, do not stop here. Broaden your watchlist now, or you risk missing other compelling setups hiding in plain sight.

• Target potential mispricings by scanning our list of 48 high quality undervalued stocks that pair solid fundamentals with more attractive entry points.
• Lock in income candidates by checking out 14 dividend fortresses, where higher yielding payers with resilient profiles are already lined up for you.
• Focus on resilience first and see which names pass stricter quality filters in our 68 resilient stocks with low risk scores before you commit fresh capital.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.