In a report released yesterday, Larry Biegelsen from Wells Fargo maintained a Buy rating on NovoCure (NVCR – Research Report), with a price target of $49.00.
Larry Biegelsen has given a Buy rating to NovoCure’s stock (NVCR) due to a strategic reorganization that the company has recently announced. This reorganization is aimed at maintaining operational expenses at a constant level until NovoCure can achieve positive adjusted EBITDA once again. Biegelsen’s confidence is further bolstered by the company’s continued commitment to its commercialization efforts in glioblastoma multiforme (GBM), its plans to launch new treatments for non-small cell lung cancer (NSCLC), and its dedication to funding key research and development projects.
The analyst also highlights that NovoCure’s efforts are concentrated on a swift return to profitability, underscored by a cost-reduction plan involving significant headcount reduction and operational expense savings. Furthermore, the anticipated growth in sales, particularly from new indications like NSCLC, is expected to contribute to reaching positive adjusted EBITDA. Biegelsen’s outlook is also informed by NovoCure’s focus on balance sheet management, particularly as it navigates towards the maturity of its $575 million convertible note due in November 2025, while also recognizing that a capital raise may still be a consideration for the company.
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Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of NVCR in relation to earlier this year.
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NovoCure (NVCR) Company Description:
NovoCure Ltd. develops treatment for tumors. Its platform is called the Tumor Treating Field which used electric fields tuned to specific frequencies to disrupt solid tumor cancer cell division. The company was founded by Yoram Palti in 2000 and is headquartered in St. Helier, Jersey.
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