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- Piper Sandler upgraded medical device maker NovoCure (NASDAQ:NVCR) to Overweight from Neutral on Tuesday, citing an attractive risk-reward setup as the company plans to share Phase 3 data for its cancer treatment, Tumor Treating Fields ((TTFieds)).
- Analyst Jason Bednar is upbeat ahead of data from NVCR's INNOVATE-3 study in recurrent ovarian cancer expected before the year-end, arguing that "the risk/reward is simply too attractive to remain on the sidelines."
- Despite poor sentiment due to mixed data from recent mid-stage trials and newly-released Phase 3 data for TTFieds in lung cancer, the analyst expects a positive readout from the INNOVATE-3 trial and sets his price target on NovoCure (NVCR) at $45 per share.
- In addition to the challenging nature of the indication, Bednar cites a "cleaner trial" and the company's success in rapidly recruiting patients amid COVID as reasons for his bullish stance.
- Shares of NovoCure (NVCR) and its partner Zai Lab Limited (ZLAB) came under pressure in June after the companies announced Phase 3 data for TTFieds in non-small cell lung cancer.