Craig-Hallum initiates NeurAxis stock with buy rating on pediatric device

Craig-Hallum initiated coverage on NeurAxis Inc. (NYSE:NRXS) Monday with a buy rating and a $7.00 price target, representing significant upside from the current price of $2.54. The research firm cited the company’s IB-Stim device, which is the first FDA-cleared therapy specifically for functional abdominal pain disorders in children. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt.

The IB-Stim is a wearable, non-invasive neurostimulator that targets the brain-gut axis to relieve pain and improve quality of life for pediatric patients. Craig-Hallum noted that this population has historically lacked innovation and is often treated with off-label drugs that can be both ineffective and carry serious side effects. The company’s impressive 85.47% gross profit margin and 27.52% revenue growth demonstrate strong commercial potential.

The medical device company’s lead product is supported by strong clinical data, according to the research firm’s analysis. The therapy was also included in clinical guidelines as of May, providing additional validation for the treatment approach.

Craig-Hallum described NeurAxis as a small MedTech company targeting a large, underserved pediatric market. The firm believes the company has the necessary catalysts in place to drive significant growth in the near future.

The research firm expressed confidence that with these factors aligned, NeurAxis is "well-positioned for explosive growth" as it addresses this unmet medical need in pediatric care.

In other recent news, Neuraxis Inc. reported a 39% increase in revenue for the first quarter of 2025, totaling $896,000. Despite this growth, the company experienced a 25% increase in operating losses, amounting to $2.3 million. Neuraxis also settled a longstanding legal dispute with a $750,000 agreement, to be paid in monthly installments starting January 2026. The company disclosed financial activities involving the conversion of Series B Preferred Stock into 342,016 shares of common stock. Additionally, Neuraxis expanded its insurance coverage significantly, now reaching 51 million lives. There was also an FDA label expansion for its IV Stem Technology, increasing the age range of eligible patients. Analyst firms have not issued any upgrades or downgrades recently, but the company’s strategic initiatives and recent developments have drawn attention. These actions reflect Neuraxis’s ongoing efforts to strengthen its market position and financial stability.

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