$AMRN - On out trading list. JP Morgan starts coverage with a neutral rating citing valuation already high enough. Maybe right the right call, maybe not. We see a bit more potential then they do as we expect sales to achieve blockbuster status and the possibility of being bought out by a large pharma company.Analysts at Cantor Fitzgerald, Stifel, and Oppenheimer also had comments recently.Last month, Vascepa was granted heart-helping label expansion by the FDA JPMorgan analyst Jessica Fye started coverage of Amarin (AMRN) with a Neutral rating and a $22 price target. While the analyst sees the company’s Vascepa "poised to achieve blockbuster status and then some," she also views the current valuation as largely reflecting what Fye projects will be a steady ramp to peak. ON THE SIDELINES: In a research note to investors, JPMorgan's Fye initiated coverage of Amarin with a Neutral rating and $22 price target. Following a recent label expansion for the reduction of cardiovascular risk, the analyst acknowledged that Amarin's Vascepa should be poised to achieve "blockbuster status and then some," ramping to about $5B global 2028 revenue. However, she argued that the shares are "fairly valued at current levels," even assuming limited downside risk from the ongoing intellectual property litigation. Fye also listed a potential takeover as a risk to her Neutral rating, but pointed out that she believes more clarity on the length of Vascepa's market exclusivity will be needed before any deal is consummated. HEART-HELPING LABEL EXPANSION: Last month, the U.S. Food and Drug Administration approved the use of Vascepa as an adjunctive therapy to reduce the risk of cardiovascular events among adults with elevated triglyceride levels of 150 milligrams per deciliter or higher. Patients must also have either established cardiovascular disease or diabetes and two or more additional risk factors for cardiovascular disease. Vascepa is the first FDA approved drug to reduce cardiovascular risk among patients with elevated triglyceride levels as an add-on to maximally tolerated statin therapy. Shortly afterward, Amarin raised its fiscal year 2019 revenue view to $410M-$425M from $380M-$420M, against a consensus of $410.25M, and gave fiscal year 2020 revenue guidance of $650M-$700M, against a consensus of $654.55M. Following the announcement, Stifel analyst Derek Archila downgraded Amarin to Hold from Buy with a price target of $28, up from $26. While the analyst said "there is no doubt in our mind Vascepa will be a multi-billion dollar product," Archila also noted that he prefers to "take profits" at the stock's then-current valuation near $11B fully diluted. Furthermore, he pointed to unpredictability around Vascepa's intellectual property litigation, the drug's "relatively short" exclusivity period, and AstraZeneca's (AZN) Epanova CVOT results next year as downside risks. While maintaining an Underperform rating on the shares, Oppenheimer analyst Leland Gershell raised his price target for Amarin to $8 from $7 following the FDA approval of Vascepa to reduce cardiovascular event risk that came roughly two weeks ahead of its December 28 PDUFA date. In a research note of his own to investors, Gershell said while this is long-awaited for Amarin, he thinks constraints on the new indication appear to imply a target patient number of just 5M-8M, which is low compared to that anticipated by bulls. The analyst added that he is concerned that Street projections overestimate Amarin's profitability, especially in the out-years. PEAK SALES POTENTIAL 'UNDERAPPRECIATED': More bullish on the stock, Cantor Fitzgerald analyst Louise Chen argued in a research note following the FDA approval that the peak sales potential of Vascepa is underappreciated and that upward earnings revisions to levels not reflected in consensus expectations should drive Amarin shares higher. The analyst kept an Overweight rating on the stock at that time with a $35 price target. $AMRN, Amarin Corporation plc / H1 Disclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal. If you liked this article, please click the LIKE (thumbs up) button. Feel free to leave any comments, question, or opinions. (Sign-up if you haven't already done so). Follow us/bookmark us and check back occasionally for additional articles or comments on our page... Wild Tiger Trading - start/main page