Here’s Why This Analyst Boosted Price Target for Amarin (AMRN) Stock
Amarin (AMRN) investors should expect material news on November 10, as that’s when the fish oil drug maker plans to release additional details from REDUCE-IT study at the 2018 Scientific Sessions of the American Heart Association (AHA) in Chicago. REDUCE-IT is evaluating whether or not Vascepa, the company’s Omega 3 product, can indeed improve outcomes for cardiovascular patients. Amarin stock could make a sizable move either up or down depending on the details released.
Wainwright analyst Andrew Fein expects a favorable outcome from the presentation at the AHA and, as such, reiterates Buy rating on AMRN, while lifting his price target to $31 (from $20). (To watch Fein’s track record, click here)
Fein wrote, “Following the topline data win of the REDUCE-IT study in September, we notice an upward momentum going into the highly expected presentation of the REDUCE-IT study at the 218 Scientific Sessions of the American Heart Association. Although management shared limited details of the upcoming presentation, we think that the heightened interest from a broad audience, the commercial implication of the additional color on the data, and a high-profile exposure at the meeting, should collectively impact investors’ views on Vascepa and the stock. We note though that since designated as “late breaking clinical trial results”, the presentation would have a short time restraint; therefore, we are unlikely to see a comprehensive analysis of the study until the publication in the 4Q. With that said, we would not be surprised to see the publication of the REDUCE-IT study results in the New England Journal of Medicine in conjunction with the conference.”
Net-net, when it comes to Wall Street’s bet, the odds are on this biotech player, with TipRanks analytics showcasing AMRN as a Strong Buy. Out of 5 analysts polled in the last 3 months, 4 are bullish on Amarin stock while 1 remains sidelined. With a return potential of nearly 21%, the stock’s consensus target price stands at $27.80. (See AMRN’s price targets and analyst ratings on TipRanks)