The BioTech company that’s been dealing with quite a few headaches with regard to stock price over the past year. However, in the past month, the stock has been soaring. So, today we’ll take a look into why Amarin (AMRN) stocks are on the uptrend and whether or not the uptrend is likely to last for the long term.
Why Are Amarin (AMRN) Stocks Trending Up?
While the uptrend started several months ago for Amarin (AMRN), the high speed uptrend we’ve seen as of late started in February. It all started in Early February when analysts at SunTrust Bank upgraded the company’s stock to a “buy” and insinuated 500% growth with a target price at $6. The reason that SunTrust Bank provided for the upgrade was the fact that they believe sales will continue to modestly increase year over year for Vascepa; compounding into an exceptional reach later in the decade.
Following the good news from SunTrust Bank, about a week and a half ago Amarin (AMRN) made a big announcement. The company had reached an agreement with Eddingpharm to develop and commercialize Vascepa throughout China. The deal proved to work out for Amarin’s best interest as their only role in the agreement is to support Eddingpharm. For doing so, Eddingpharm will take care of all development and promotional activities in China; while taking on the expenses in doing so. Amarin (AMRN) was paid $15 million upfront and as a potential to earn upwards of $154 million from the deal over time.
From There Investor Excitement Seems To Have Done The Rest!
Any time investors see upward movement in a stock that they own, it’s hard not to get excited. However, when a stock rises by 48% over the course of a month, it’s just about impossible to stay calm. The bottom line is that Amarin (AMRN) stocks are showing staggering momentum and everyone wants to get a piece of the pie. As the stock continues to rise, investors will want to invest more and more; especially considering that the target price for the stock is still very far off. So, at this point, growth seems to have become a perpetual process; growth equals more growth!
Will Amarin (AMRN) Stocks Continue To Climb?
All we’ve seen from Amarin (AMRN) over the past month or so has been nothing but good news. As a result, as I mentioned above, we are now seeing quite a bit of upward momentum in the stock price. However, we all know that what goes up, must eventually come down. So, the big question here is, will this uptrend come down any time soon, or are we looking at long term earning potential with Amarin (AMRN) stocks? Personally, I’m going to side with the analysts at SunTrust Bank on this one. I think with the continuous increase in medication sales, Amarin (AMRN) will continue to rise for the long run!
What Do You Think?
Do you think Amarin (AMRN) is seeing the start of long-term upward growth? Let us know in the comments below!