Viking Therapeutics stock has 72% upside, according to one Wall Street analyst.

Investors looking for stocks that can produce dramatic returns over a short period of time may want to turn their attention to the biopharmaceutical industry. stock viking cure (VKTX -2.93%) This year alone, it has already increased more than four times.

Despite the Vikings’ rapid rise Oppenheimer Analyst Jay Olson thinks prices could go much higher over the next 12 months. Olson recently increased his price target on Viking Therapeutics from $116 to $138 and maintained an outperform rating on the stock.

A better weight management drug?

Oppenheimer’s increased price target is a response to positive clinical trial results for an experimental weight management treatment called VK2735 being developed by Viking Therapeutics.

VK2735 is a dual GLP-1 and GIP agonist similar to Tirzepatide. ellie lily. Tirzepatide is the active ingredient in the diabetes medication Mounjaro and Zepbound, approved for weight management. Estimates vary, but Wall Street analysts believe tirzepatide annual sales could exceed $50 billion annually at its peak.

In a mid-phase clinical trial, 35 patients treated with 15 mg/week of VK2735 achieved a 14.7% weight loss. Those numbers are likely to rival those of Zepbound, but it will be a long time before this still-experimental treatment has a chance to compete with Lilly’s blockbuster.

Buying Viking Therapeutics now?

Analysts aren’t wrong to hint at potential upside for Viking Therapeutics, but the stock is probably too risky for most investors. At recent prices, Viking Therapeutics boasts a market capitalization of $8.2 billion, despite not yet having any approved products for sale. Unless you have an extremely high tolerance for risk, it may be best to avoid this stock until positive late-stage clinical trial data emerges.