Albemarle (NYSE: ALB | ALB Price Prediction) had an incredible year.
Since bottoming out at around $50 in April, the lithium giant exploded to $145.38. This morning, it’s up another $4.15 and could race even higher, especially with Ganfeng Lithium Chairman LI Liangbin noting that demand could rise 30% to 50% next year.
In addition, according to Sprott, the rebound in lithium “is being driven by robust demand growth and ongoing inventory reduction, alongside regulatory tightening, including the shutdown of a major Chinese lithium mine by Contemporary Amperex Technology Co. Ltd. (CATL) and new government measures aimed at preventing producers from selling lithium at unsustainably low prices. The increased recognition of lithium as a critical mineral, combined with Western concerns over China’s control of global supply chains, is bolstering the sector outside of China.”
Shares of ALB now trade at $145.38. From here, we’d like to see it test $160 initially.
Novo Nordisk
Novo Nordisk (NYSE: NVO) is up by $3.50 in premarket.
That’s thanks to news that the company’s Wegovy secured approval of its GLP-1 pill. The company expects to launch the pill in early January and expects the pill to help people lose as much weight as with the injections.
Also, “In the 64-week OASIS 4 study of 307 adults without diabetes, participants taking the pill alongside lifestyle changes lost an average of 16.6% of body weight, compared with 2.7% for placebo. Over a third (34.4%) achieved at least 20% weight loss, versus 2.9% for placebo,” said the company in a recent press release.
This should be big news for the beaten-down NVO stock.
Since peaking at $62.50 in September, NVO now trades at $48.10. From here, given the potential for further weight loss success, we’d like to see it rally to $55 initially.
Viking Therapeutics
Obesity treatment company, Viking Therapeutics (NASDAQ: VKTX) is seeing upside this morning thanks to Novo Nordisk.
Most recently, VKTX completed “enrolling study participants in the phase III VANQUISH-1 study, which is evaluating the safety and efficacy of the subcutaneous (SC) formulation of its investigational obesity drug, VK2735,” as noted in a Viking press release.
“Earlier this year, the company completed enrollment in the phase II VENTURE-Oral Dosing study that evaluated the oral formulation of VK2735. This study, which was announced in January, reached full enrollment by March.”
As we wait for results, analysts at HC Wainright has a buy rating on the VKTX stock with a price target of $102.
Fueling more upside for obesity stocks, the global obesity treatment market could grow to $130 billion by 2030, according to Goldman Sachs. Even Morgan Stanley expects the global obesity drug treatment market to reach $105 billion by 2030 from $77 billion. At the high end, $144 billion.
Plus, there may be no shortage of demand for treatments.
That’s because, according to the World Health Organization, obesity has more than doubled since 1990. Adolescent obesity has quadrupled. In addition, about 390 million children and adolescents aged five to 19 years were overweight in 2022, including 160 million who were living with obesity.
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