Piper Sandler has reiterated an Overweight rating on NovoCure Ltd. (NASDAQ: NVCR) and maintained a $27.00 price target, a level the firm says implies in excess of 118% upside from the then-current share price of $12.38. InvestingPro analysis cited in the note indicates the stock appears undervalued when measured against its Fair Value assessment.
In its research commentary, Piper Sandler described "clear messaging shifts" after Frank Leonard’s initial two months as chief executive. The firm characterized these adjustments as a "soft reset" rather than a wholesale change to NovoCure’s strategic direction, emphasizing that the company is refining communication and execution rather than replacing its prior strategy.
One of the principal operational changes highlighted by the analyst is NovoCure’s pledge to provide financial guidance for the first time. Piper Sandler views this development as addressing a key impediment to investability by giving investors a clearer line of sight into near-term performance drivers.
The note also points to a recalibrated approach to research and development spending in non-small cell lung cancer (NSCLC). Piper Sandler summarized NovoCure’s plan as to spend "more responsibly" in NSCLC programs, a move the firm believes will help accelerate the company's route to profitability by prioritizing resource allocation.
Looking ahead, Piper Sandler expects these strategic adjustments to align with what it terms a "catalyst-heavy 2026," with important milestones anticipated across clinical, regulatory and commercial fronts that could influence the company’s trajectory.
NovoCure also reported preliminary unaudited financial results for the full year 2025. The company posted revenue of $655.4 million, an increase of 8% compared with the prior year. Fourth-quarter revenue totaled $174.4 million, with the U.S. contributing $101.6 million. International revenue contributors cited included Germany at $21.6 million, France at $20.5 million and Japan at $10.2 million.
Following these financial disclosures, H.C. Wainwright reiterated its Buy rating on NovoCure, issuing a $39.00 price target in commentary tied to the results. The same firm additionally reiterated a Buy rating with a $42.00 price target in the context of the company’s leadership transition.
On the leadership front, NovoCure announced a management change with Frank Leonard becoming chief executive officer effective immediately, replacing Ashley Cordova. Leonard has been with the company since 2010 and has held a range of leadership positions, including roles overseeing global sales and marketing.
Key points
- Piper Sandler reiterates Overweight and sets a $27.00 target, implying greater than 118% upside from $12.38; InvestingPro flags the stock as appearing undervalued based on Fair Value assessment.
- Company commits to first-time financial guidance and signals more disciplined NSCLC spending as part of a "soft reset" under new CEO Frank Leonard.
- Preliminary unaudited 2025 revenue of $655.4 million (up 8% year-over-year); Q4 revenue $174.4 million with U.S. at $101.6 million and notable contributions from Germany, France and Japan.
Risks and uncertainties
- Execution risk around the newly stated financial guidance and whether it materially improves investor confidence - impacts healthcare and equity market perceptions.
- Uncertainty over whether disciplined spending on NSCLC will translate into faster profitability - affects R&D-dependent segments of the healthcare sector.
- Reliance on anticipated 2026 catalysts across clinical, regulatory and commercial tracks - milestones may not occur as expected and could influence market valuation.