Amarin Corp Plc (AMRN)

[JohnDavisonRockefeller]

Goldman Sachs on board extracting Amarin from its "basket list" of high growth potential stocks:

Goldman Sachs: 3 Stocks to Snap up on the Dip https://www.smarteranalyst.com/analyst-insights/goldman-sachs-3-stocks-to-snap-up-on-the-dip/ $SPR $AMRN $VVV


Goldman Sachs: 3 Stocks to Snap up on the Dip
TipRanks•March 17, 2020

Stock markets saw another spectacular drop yesterday, which come on the heels of the Federal Reserve interest rate cut, among other governmental actions to combat the COVID-19 panic – and it’s a clear sign that traders are not going to be easily reassured in the current crisis. With so many businesses shuttered or on part time as communities struggle with large-scale and indeterminate lockdowns and quarantines, the only certainty is that economic effects will be widespread – and the impact cannot yet be seen. In a hopeful development, President Trump, in yesterday's statement from the White House, announced that the Federal government is green-lighting clinical trials on vaccine development.

We can't predict the future, but one thing is clear: the market volatility has not ended, nor is it likely to soon. Traders will have to put up with steep gains and losses – although hopefully not as severe as yesterday's 3,000-point drop in the Dow Jones average. But with these losses comes an opportunity: plenty of otherwise sound stocks will be pushed to discount prices by the general bear market, and for savvy investors, this may be the right time to buy in.

So with this in mind, we extracted three intriguing stock ideas from Goldman Sachs’ basket list. As you will see, Goldman estimates big upside potential of over 60% for each of the stocks covered below. And to get an even better idea of each stock’s outlook, we use TipRanks data to understand the overall Street consensus. This makes it easy to decide whether these stocks make compelling investing propositions right now. Overall, these stocks offer investors a rare opportunity to find high growth potential alongside a discount entry price.


Amarin Corporation (AMRN)

Amarin is a cutting-edge biotech with an ace up its sleeve: an approved product on the market. The company produces Vascepa, which was approved in 2012. Vascepa is based on fish oils, specifically Omega-3 fatty acids, and is marketed as a preventative treatment for hypertriglyceridemia, a cause of heart disease in adults.

Amarin has reported strong sales of Vascepa, on the order of $425 million for full-year 2019 numbers. The company’s guidance for 2020 puts sales in the range $650 million to $700 million, a strong gain that will help offset predicted increases in operating expenses. AMRN’s earnings and revenues are on a positive trend, having beaten the estimates in Q4; meeting the Vascepa sales figures this year will help continue that move.

Writing on the stock for Goldman, 4-star analyst Paul Choi sees Amarin achieving just that. The analyst says of the company’s prospects going forward, “Last December, Vascepa was approved for an expanded label that is larger than we had previously initially expected and now includes patients with both established cardiovascular risk and diabetes… We estimate that this is a population of nearly nine million eligible patients in the US, which compares to the three million patients previously eligible based on the initial Vascepa label… We now expect AMRN to beat consensus revenue estimates and AMRN’s guidance in 2020.”

"With the recent pullback in AMRN, which has been driven by both idiosyncratic and macro factors, we now see its valuation as compelling in the midst of its ongoing launch of Vascepa in the REDUCE-IT population," the analyst concluded.

As a result, Choi bumped his stance on AMRN from Neutral to Buy, and sets a $28 price target. His target indicates confidence in a powerful 173% upside potential, underscoring the great profit potential inherent it the stock. (To watch Choi’s track record, click here)

All in all, Amarin has 8 Buy-side ratings given in recent weeks. These are partially balanced by 2 Holds and 1 Sell, making the analyst consensus view a Moderate Buy. AMRN shares closed yesterday at $10.26, and have a 173% upside potential based on the average price target of $28.10. (See Amarin stock analysis on TipRanks)