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On Monday, Cantor Fitzgerald analyst Ross Osborn reaffirmed a $20.00 price target on NeuroPace Inc (NASDAQ:NPCE), while keeping an Overweight stock rating. NeuroPace, a medical device company, announced its fourth-quarter results for fiscal year 2024, showcasing a year-over-year revenue increase of approximately 19%. The company’s revenue for the quarter was reported at $21.5 million, which was in line with Cantor Fitzgerald’s expectation of $21.6 million and surpassed the FactSet consensus of $20.7 million. According to InvestingPro data, the company maintains impressive gross margins of ~74% and has seen strong revenue growth of 22% over the last twelve months.
The revenue growth was attributed to heightened sales of NeuroPace’s RNS System and DIXI Medical (TASE:BLWV) products. These products are central to the company’s portfolio and have contributed significantly to its financial performance.
Furthermore, NeuroPace confirmed its revenue guidance for the fiscal year 2025, signaling confidence in its business trajectory. This guidance is particularly noteworthy as it suggests a positive outlook for the company’s revenue stream in the coming year.
Additionally, NeuroPace successfully executed a capital raise during its Investor Day. The funds from this raise are planned to be utilized for a share buyback program, which is expected to benefit shareholders. The buyback initiative also aims to provide the company with a financial bridge that will support its journey towards achieving positive cash flow.
Moreover, the capital raise is set to ensure that NeuroPace stays on track with the timelines for its NAUTILUS project, which is an important aspect of the company’s strategic plans. The reaffirmation of the price target and stock rating by Cantor Fitzgerald reflects an optimistic view of NeuroPace’s financial health and its potential for future growth.
In other recent news, NeuroPace Inc. reported its fourth-quarter 2024 earnings, exceeding analysts’ expectations. The company posted an adjusted earnings per share (EPS) of -$0.18, surpassing the forecasted -$0.25. NeuroPace also reported revenue of $21.5 million, which was higher than the anticipated $20.91 million, marking a 19% increase compared to the same quarter in the previous year. For the full year, the company saw a 22% increase in total revenue, reaching $79.9 million. NeuroPace’s sales of its RNS system grew by 27% year-over-year, contributing significantly to its revenue growth.
The company aims for a revenue range of $92 million to $96 million in 2025, indicating a projected growth of 15-20%. NeuroPace is focusing on expanding its commercial organization and enhancing consumer awareness to drive future growth. In addition, the company has been working on expanding its indications, with ongoing studies in idiopathic generalized epilepsy and pediatric focal epilepsy. Analyst firms have shown interest in NeuroPace’s growth trajectory, with the company managing to maintain a gross margin of 75.4% in the fourth quarter.
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