NVCR - Novocure upgraded to buy at Oppenheimer on valuation growth potential

Oppenheimer has upgraded shares of NovoCure (NVCR +1.6%) from perform to outperform citing the company's current valuation and growth from the release of next-generation arrays mid year. The firm has a $98 price target (~37% upside based on yesterday's close). Analyst Kevin DeGeeter wrote that the Street has low expectations for growth in treating glioblastoma ("GBM"). Novocure's technology, Tumor Treating Fields (TTFs), use electric fields to disrupt cancer cell division. "New array promises higher peak current (1,988  vs  1,558  mAMPs), better coverage and lower peak temperature (36.9C vs 37.5C)," DeGeeter said. DeGeeter noted that TTFs currently have ~35% market share for treatment of GMB and a $550M revenue run rate. But he sees a road to $750+M in GBM alone "with limited near-term risk from new market entrants." Read what Truist had to say about NovoCure last month.

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Novocure upgraded to buy at Oppenheimer on valuation, growth potential