Why Amarin Stock Is Tumbling Today
Shares of Amarin (NASDAQ: AMRN) were tumbling 5.5% lower as of 10:40 a.m. EDT on Wednesday after falling as much as 7.2% earlier in the session. The decline came after Goldman Sachs downgraded the stock from a neutral rating to sell and slashed its price target from $5 per share to $1.
Investors shouldn't overreact to analysts' downgrades and price-target cuts. However, it's always a good idea to understand the rationale behind them.
In this case, Goldman Sachs analyst Paul Choi thinks that Amarin will experience significant pressure on U.S. Vascepa sales due to generic competition. Choi's view was based on conversations with physicians in the U.S.
Source Fool.com
