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Investing.com - Leerink Partners maintained its outperform rating and $17.00 price target on NeuroPace Inc (NASDAQ:NPCE), currently trading at $10.57, following management meetings on Wednesday. According to InvestingPro data, analyst targets range from $15 to $20, suggesting significant upside potential from current levels.
The firm expressed increased optimism about NeuroPace’s potential for near-term indication expansion into generalized epilepsy, the durability of its long-range plan, and the stock’s current positioning. Supporting this optimism, the company has demonstrated strong revenue growth of 22.05% over the last twelve months, with an impressive gross margin of 74.83%. Leerink views the company’s 2025 guidance as achievable, though notes that revenue trajectory for 2026 and 2027 will be affected by DIXI revenue decreases and uncertainty regarding generalized epilepsy indication expansion.
Leerink analysts came away "incrementally positive" on the probability of approval for the generalized epilepsy indication, citing management’s confidence in their second-half 2025 submission timing following initial FDA engagement. The firm believes this keeps open the possibility that regulators may accept NAUTILUS trial data showing statistically significant safety and seizure frequency reduction as a basis for approval.
The research note highlighted "underappreciated upside" from potential expansion into pediatric focal epilepsy, which will also be submitted in the second half of 2025, and Lennox-Gastaut syndrome. These expansions could support the company’s long-range plan targets.
Leerink also indicated that NeuroPace’s 2027 cash flow breakeven target remains attainable following a recent debt refinancing, and expressed positive impressions of newly appointed CFO Patrick Williams. InvestingPro analysis reveals the company maintains a healthy current ratio of 6.63, indicating strong liquidity to meet near-term obligations. For deeper insights into NeuroPace’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, NeuroPace, Inc. has made several notable announcements. The company has appointed Patrick F. Williams as its new Chief Financial Officer, succeeding Rebecca Kuhn, who will remain in an advisory role for the next year. NeuroPace also secured a $75 million credit facility with MidCap Financial, which includes a $60 million term loan and a $15 million revolving credit facility. This new financial arrangement is intended to reduce interest expenses and support growth initiatives, such as expanding access to the company’s RNS System.
Analyst firms have shown confidence in NeuroPace’s prospects, with Cantor Fitzgerald maintaining an Overweight rating and a $16.00 price target, citing optimism about potential FDA approval for an expanded indication of the RNS System. Similarly, UBS reiterated its buy rating and set an $18.00 price target, highlighting positive survey results from physicians regarding the company’s NAUTILUS data. These developments underscore the company’s strategic focus on expanding its market presence and enhancing its financial flexibility.
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