Stock market today: S&P 500 climbs as health care, tech gain; Nvidia earnings loom
On Tuesday, Cantor Fitzgerald reaffirmed its Overweight rating and $16.00 price target for NeuroPace Inc (NASDAQ:NPCE), following the release of preliminary results from the company’s NAUTILUS study. The company, with a market capitalization of $405 million and impressive revenue growth of 22% over the last twelve months, has attracted attention from analysts, with four recently revising their earnings estimates upward according to InvestingPro data. The study assessed the RNS System in patients with idiopathic generalized epilepsy (IGE) but failed to meet its primary effectiveness endpoint in the overall population. Despite this, subgroup analyses revealed a clinically meaningful benefit, particularly in patients experiencing two or fewer seizures per month.
NeuroPace reported that this specific group showed a highly statistically significant improvement on the primary endpoint. Moreover, after one year of RNS System use, there was a median seizure reduction of over 80%, a figure that surpasses the results at the time of RNS approval for focal epilepsy and is consistent with three-year outcomes from the company’s post-approval study.
Cantor Fitzgerald analyst Ross Osborn highlighted the sustained efficacy of the RNS System, even among patients with drug-resistant conditions, suggesting a potential pathway for NeuroPace to secure an expanded indication for generalized epilepsy. Osborn’s stance reaffirms the long-term value proposition of the RNS System.
Despite the positive subgroup findings, NeuroPace shares experienced a significant decline on Tuesday, trading down approximately 34.1%, in contrast to the broader market, with the SP568 index rising about 1.7% as of late Tuesday morning. The firm suggests that the market’s reaction presents a buying opportunity for investors interested in NeuroPace. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with a beta of 2.05 suggesting higher volatility than the market. For deeper insights into NeuroPace’s valuation and 12+ additional ProTips, including detailed financial health metrics, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, NeuroPace Inc. reported its first-quarter 2025 earnings, surpassing expectations with a revenue of $22.5 million, which exceeded the anticipated $21.85 million. The company also posted an earnings per share (EPS) of -$0.21 against a forecast of -$0.24, indicating improved financial performance. This marks a 24% year-over-year revenue increase, primarily driven by strong sales of its RNS System. NeuroPace has revised its 2025 revenue forecast upwards, now expecting revenues between $93-97 million, representing a growth of about 16-21%.
The company recently released preliminary one-year data from the NAUTILUS study, evaluating the RNS System in patients with idiopathic generalized epilepsy (IGE). While the study met its primary safety endpoint, it did not achieve statistical significance in its primary effectiveness endpoint. However, a statistically significant response was noted in a subset of patients with lower baseline seizure frequency. Despite the mixed results, NeuroPace remains optimistic about the RNS System’s potential for personalized patient treatment over time.
Analysts at Leerink Partners maintained an Outperform rating on NeuroPace stock, while Cantor Fitzgerald reaffirmed an Overweight rating, highlighting the company’s encouraging first-quarter earnings and raised revenue guidance. NeuroPace plans to submit the full dataset from the NAUTILUS study to the FDA and engage in discussions for regulatory pathways. The company continues to focus on expanding its RNS System and has discontinued SEEG product distribution to concentrate on its core business.
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