Cantor Fitzgerald maintains overweight rating on NeuroPace stock

On Monday, Cantor Fitzgerald analysts reiterated their Overweight rating on NeuroPace Inc (NASDAQ: NPCE) stock, maintaining their price target of $16.00. This target aligns with the broader analyst consensus, with targets ranging from $15 to $20. According to InvestingPro data, the stock has seen significant volatility, dropping 25% in the past week despite delivering a remarkable 91% return over the last year. This reaffirmation follows the announcement of preliminary one-year results from NeuroPace’s NAUTILUS study.

The NAUTILUS study, which evaluates the RNS System in patients with idiopathic generalized epilepsy (IGE), did not achieve its primary effectiveness endpoint. The endpoint was defined as a statistically significant delay in time to a second seizure for the active stimulation group compared to the sham group. Despite this setback, InvestingPro analysis shows the company maintains strong revenue growth of 22% and a healthy gross margin of 75%. Get access to 8 more exclusive ProTips and comprehensive financial analysis with InvestingPro.

Despite the study not meeting its primary goal in the overall population, the data revealed important subgroup findings. These findings suggest a clinically meaningful impact of the RNS System for certain patients.

NeuroPace remains focused on advancing its RNS System, which is designed to treat patients with epilepsy by monitoring brain activity and delivering electrical pulses to help prevent seizures.

The company continues to analyze the subgroup data to better understand the potential benefits of its technology for specific patient groups.

In other recent news, NeuroPace Inc reported strong financial performance with full-year 2024 revenue reaching $79.9 million, marking a 22% year-over-year increase. The first quarter of 2025 continued this trend with $22.5 million in revenue, a 24% year-over-year growth. Management anticipates full-year 2025 revenues between $93 million and $97 million, representing 16-21% growth. Meanwhile, H.C. Wainwright initiated coverage on NeuroPace with a Buy rating and a price target of $18, citing solid revenue growth and the clinical effectiveness of the RNS system. Cantor Fitzgerald maintained its Overweight rating and $16 price target, despite the NAUTILUS study not meeting its primary effectiveness endpoint in the overall population. The study did show significant improvement in a subgroup of patients with fewer seizures. Leerink Partners also maintained an Outperform rating, acknowledging the safety profile of the RNS system but noting concerns over the lack of statistical significance in the primary efficacy endpoint. NeuroPace plans to submit the NAUTILUS study data to the FDA and for peer-reviewed publication, focusing on potential future indication expansion.

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