Throughout the past year, the stock market has been a playground for growth investors, with the Nasdaq Composite index surging 43% in 2023 and boasting a solid 39% increase over the last 12 months. Amidst this booming environment, Wall Street analysts specializing in the biopharmaceutical sector are predicting substantial growth opportunities for two standout companies.
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The Praising Winds of Viking Therapeutics
Viking Therapeutics, ticker symbol VKTX, has already seen its shares skyrocket by approximately 275% in 2023. Despite this jaw-dropping growth, Wall Street analysts are prophesying even greater heights for the clinical-stage biotech company, with a consensus price target implying an imminent 47% climb.
The company achieved a remarkable spike in its stock value in February following the encouraging results from a phase 2 trial involving its anti-obesity candidate VK2735. The drug showed promising similarities to Eli Lilly’s tirzepatide, the primary ingredient in Mounjaro and Zepbound.
Although Viking Therapeutics is yet to launch any approved products, its market cap has surged to $7 billion. The vibrant potential for further growth is inviting, but prudent investors should tread cautiously due to the inherent risks associated with clinical trials and product approvals.
The Ray of Hope from Iovance Biotherapeutics
On the other front, Iovance Biotherapeutics, trading under the ticker IOVA, has witnessed an extraordinary threefold increase in its shares over the past half-year. Market whispers suggest that there’s more to come, with a consensus price target foreseeing yet another substantial 73% leap within the coming year.
The recent FDA approval of Iovance’s groundbreaking cancer therapy, Amtagvi, has been the primary driver behind its surge. Amtagvi’s accelerated approval for advanced-stage melanoma patients represents a significant milestone, although the company still needs to demonstrate long-term efficacy to maintain its market appeal.
With a lofty market cap of $4.3 billion, Iovance’s success hinges on its ability to translate promising tumor response rates into sustained benefits for patients. Given the unpredictable nature of complex cellular-cancer therapies, a cautious approach is advisable until the company demonstrates robust post-launch performance.
Ready to Take the Plunge with Viking Therapeutics?
Before diving into Viking Therapeutics, consider this – the renowned Motley Fool Stock Advisor analyst team, known for identifying lucrative investment opportunities, did not include Viking Therapeutics among their top 10 picks. While the stock shows immense promise, there are other contenders that may promise even greater returns in the long run.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Iovance Biotherapeutics. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
