Can you feel the ground moving beneath your feet? Amarin (AMRN) share price has jumped nearly seven-folds in value over the past 2 weeks, which makes for an eye-popping valuation. Yet, Cantor analyst Louise Chen believes the stock still has room to climb another 74%
In research note issued today, Chen reiterated AMRN with an Overweight rating (despite how it sounds, that’s a compliment), while boosting the price target from $15.00 to $35.00. (To watch Chen’s track record, click here).
Investors reacted positively to the price target boost, bidding up the stock 11.50% to $20.29.
Chen commented, “The higher PT is driven by our increased confidence that the data presentation at AHA will point to a larger than expected potential patient population for Vascepa. Our belief is supported by our calls with physicians and recent discussions with AMRN’s management team at Cantor’s Global Healthcare Conference. We hosted AMRN for a presentation, one-on-one meetings and a well attended group dinner.”
“If we are right, then there is still significant upside to consensus numbers. Vascepa has ~5% of the 4% of 70MM patients that are eligible for treatment and that are currently being treated. They have an opportunity to take more of the 4% share, but the bigger opportunity also lies in the 96% of patients that are currently not being treated. AMRN maintains that Vascepa is a volume story, so we are not expecting price increases to drive the upside. If something were to happen on price, this decision would be made closer to the label decisions rather than now. AMRN is contracted to next year with most plans,” the analyst continued.
Net net, Wall Street’s confidence backing this golden fish is strong, with TipRanks analytics showcasing AMRN as a Strong Buy. Based on 3 analysts polled in the last 3 months, all 3 rate a Buy on Amarin stock. The 12-month average price target stands at $23.33, marking a nearly 14% upside from current levels. (See AMRN’s price targets and analyst ratings on TipRanks)