Canaccord Genuity Cuts PT on Amarin (AMRN) But Still Sees a Double
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Price: $14.09 +0.21%
Rating Summary:
6 Buy, 12 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
6 Buy, 12 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Canaccord Genuity cut its price target on Amarin Corporation (NASDAQ: AMRN) from $19 to $17, which still offers nearly 100% upside from current levels.
"We continue to expect business development talks to intensify and Vascepa to receive NCE (five-year exclusivity). Our $17 target is based on a sum-of-the-parts analysis, combining a DCF of high triglyceride sales and pNPV of mixed dyslipidemia sales."
The firm raised its R&D assumptions to account for non-capitalized inventory investment and raised its SG&A spend to account for aggressive 2013 marketing.
In addition, Canaccord lowered gross margin assumptions in early years of launch. "We have a refined understanding of out-of-the-gates gross margins during the time period that Nisshin remains the sole supplier of saleable inventory. Nisshin retains a certain amount of pricing power with AMRN during this period that we think will fall off after additional suppliers are approved."
For an analyst ratings summary and ratings history on Amarin Corporation click here. For more ratings news on Amarin Corporation click here.
Shares of Amarin Corporation closed at $8.53 yesterday.
"We continue to expect business development talks to intensify and Vascepa to receive NCE (five-year exclusivity). Our $17 target is based on a sum-of-the-parts analysis, combining a DCF of high triglyceride sales and pNPV of mixed dyslipidemia sales."
The firm raised its R&D assumptions to account for non-capitalized inventory investment and raised its SG&A spend to account for aggressive 2013 marketing.
In addition, Canaccord lowered gross margin assumptions in early years of launch. "We have a refined understanding of out-of-the-gates gross margins during the time period that Nisshin remains the sole supplier of saleable inventory. Nisshin retains a certain amount of pricing power with AMRN during this period that we think will fall off after additional suppliers are approved."
For an analyst ratings summary and ratings history on Amarin Corporation click here. For more ratings news on Amarin Corporation click here.
Shares of Amarin Corporation closed at $8.53 yesterday.
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