Cantor Pounds the Table on Amarin (AMRN) Stock


Cantor analyst Louise Chen was out pounding the table on shares of Amarin (AMRN) Thursday, reiterating an Overweight rating with a price target of $35, which implies an upside of 68% from current levels.

Amarin appears to have cracked the fish oil code with its fish oil pill, Vascepa. Recent results from an 8,000-plus patient study showed that Vascepa reduced the risk of a cardiovascular event by 25%, and while doing so, maintained the same safety profile as other fish oil pills. In other words, Vascepa solved the fish oil efficacy problem without compromising safety. That is a big deal, and it has been a huge catalyst for AMRN stock. That means doctors and patients worldwide can now use Vascepa as a viable, cost-efficient and patient-convenient treatment for cardiovascular disease.

Chen stated, “Post a solid quarter of execution, positive REDUCE-IT data, and ahead of what we expect to be more good data for REDUCE-IT at AHA on 11/10, we are reiterating our OW rating and 12-month PT of $35 for AMRN shares. We believe that the addressable market opportunity for Vascepa is still underappreciated, and that upwards earnings revisions of the peak sales for the drug should drive AMRN’s stock higher.”

“AMRN reported 3Q18 EPS of $(0.08), $0.02 higher than FactSet consensus, and $0.03 above our estimate. Prior to positive REDUCE-IT results, AMRN has said it expects 2018 Vascepa sales of ~$230MM (FactSet consensus was at $229MM). AMRN noted that it did not think 3Q18 Vascepa sales were positively impacted by the good REDUCE-IT results. We think AMRN’s financial guidance will be reassessed after full REDUCE-IT results are presented at AHA. We have updated our model for 3Q18 which increased our 2018 and 2019 EPS estimates,” the analyst continued.

Net-net, Wall Street’s confidence backing this fish oil drug maker is strong, with TipRanks analytics showcasing AMRN as a Strong Buy. Based on 4 analysts polled in the last 3 months, all 4 rate a Buy on Amarin stock. The 12-month average price target stands at $23.75, marking a nearly 14% upside from where the stock is currently trading. (See AMRN’s price targets and analyst ratings on TipRanks)

 

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