Is Now The Right Time To Bet On NovoCure (NVCR)?

NovoCure Limited (NVCR) shares saw a recent bid of $15.30 and 1.66M shares have exchanged hands in the recent trading session, yielding a 12.09% gain over the past week. The stock price increased 7.75% or $-1.1 versus $14.20 at the end of the prior session. This change led market cap to move at $1.30B, putting the price 2.68% below the 52-week high and 157.14% above the 52-week low. The company’s stock has a normal trading capacity of 991.29K shares while the relative volume is 1.67.

To stay one step ahead we extended our research by comparing different price targets. The stock notched a 12-month high of $18.17 while $34.00 target is by far the most aggressive out of analysts who are currently evaluating the company, $15.83 higher than the next highest 52-week price estimate. The lowest 12-month price target for the shares is $11.00, which would be decrease of about -28% of its current value. The mean target of $15.00 should be compared with the price when the stock was languishing around $5.95 a share. And it remains to be seen which target price NVCR can achieve without sacrificing much as the company is holding a 14.61% gain for the past twelve months.

By historical standards, NovoCure Limited remains a cheap stock. The company’s current price-earnings ratio amounts  above the average P/E ratio of 228.69 times earnings. For now, NovoCure Limited is the toast of Wall Street as its ABR stands at 1.80 with 2 out of 6 analysts rating the stock a buy. Over the short term, some market observers may have noticed that NovoCure Limited has a 11.50% short float with 15 days to cover. It becomes significant when you consider how many shares are shorted versus the average daily volume, means how many days to cover those short shares at that volume. NovoCure Limited has far performed well this year, with the share price up 94.90% since January. Over the past 2 quarters, the stock is up 83.23%, compared with a gain of nearly 118.57% for 3 months and about 24.39% for the past 30 days.

Revenue for the quarter also did not kill consensus, coming in at $34.88M, compared to the consensus of 36.96M. Nonetheless, from here on out, earnings per share forecasts for the current quarter are $-0.22. The company is expected to report EPS as high as $-0.16 and as low as $-0.26 per share. Similarly, full-year EPS forecasts have ranged between $-1.02 and $-0.55. The mean EPS estimate is $-0.80. On the other side, sales forecasts for the current quarter are $40.38M. The stock is expected to report revenue as high as $46.3M and as low as $35.6M per share. Similarly, full-year sales forecasts have ranged between $159.99M and $203M. The mean revenue estimate is $178.35M.

Over the last 5 years, Analysts are expecting EPS growth rates to be at 58.00% this quarter and EPS estimate for next year reflect 65.00% growth rate.

Sell-side analysts also have something to say about this company. Wells Fargo raised its rating on NovoCure Limited to Outperform on 24/05/2017 in a reversal from its prior Market Perform rating. Wedbush analysts stated on 29/07/2016 that they maintained their Outperform rating. Barclays analysts stated on 19/01/2016 that they launched coverage on this stock with Underweight rating. Deutsche Bank analysts stated on 02/12/2015 that they launched coverage on this stock with Hold rating.

Is Now The Right Time To Bet On NovoCure (NVCR)? was last modified: June 12th, 2017 by Tiller Blare
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