Aegis Analyst Cheers on Novocure Ltd (NVCR) Encouraging Clinical Data


Novocure Ltd (NASDAQ:NVCR) shares were on a close to 40% surge Monday, after the device maker announced positive survival data from a phase 2 pilot trial of its noninvasive therapy in patients with pancreatic cancer.

In reaction, Aegis analyst Difei Yang reiterated a Buy rating with a price target of $14, which represents a potential upside of 26% from where the stock is currently trading.

Yang commented, “We are very encouraged by the five year survival data for GBM patients, we believe it would facilitate discussion with CMS to obtain reimbursement for medicare patients in the US and encourage further market penetration. Both of which should improve near term revenue growth trajectory which our PT is based on. For long term growth, the phase II data for ovarian and pancreatic cancer are interesting and we do not believe it is currently priced into the shares.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Difei Yang has a yearly average return of 8.6% and a 46% success rate. Yang is ranked #526 out of 4562 analysts.

Out of the 7 analysts polled in the past 12 months, 4 rate NovoCure stock a Buy, 2 rate the stock a Hold and 1 recommends to Sell. With a return potential of 10%, the stock’s consensus target price stands at $12.20.

 

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