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Investing.com - Wolfe Research has lowered its price target on NeuroPace Inc (NASDAQ:NPCE) to $13.00 from $15.00 while maintaining an Outperform rating. Currently trading at $9.32, the stock sits below the consensus analyst target range of $15-$20, with InvestingPro data showing the stock is currently overvalued based on its proprietary Fair Value model.
The firm noted that NeuroPace has revised its 2025 revenue guidance higher, raising the range by $1 million on both low and high ends to $94 million-$98 million, representing year-over-year growth of 18% to 23%. This updated guidance is now $2 million higher at the midpoint than the company’s original 2025 forecast. InvestingPro data reveals strong revenue momentum, with the company achieving 23.3% growth in the last twelve months.
NeuroPace also increased its gross margin guidance, raising it by 2% on the low end and 1% on the high end for a new range of 75%-76%. The company has already demonstrated strong margin performance, with InvestingPro showing a current gross profit margin of 75.7%. The company affirmed its operating expense guidance for 2025 at $92 million-$95 million, which includes sales and marketing expenses of $46 million-$47 million, general and administrative costs of $19 million-$20 million, and research and development spending of $27 million-$28 million.
The company completed a debt refinancing during the quarter that is expected to improve annualized interest expense by approximately $2 million. For full-year 2025, NeuroPace anticipates $8 million in interest expense and $2.5 million in interest income. According to InvestingPro analysis, the company operates with a moderate level of debt and maintains healthy liquidity with a current ratio of 5.47.
Wolfe Research mentioned that while the NAUTILUS trial for generalized epilepsy missed its primary endpoint, NeuroPace remains optimistic about primary safety and secondary efficacy endpoint results. The company’s pre-submission documents have been accepted by the FDA, and NeuroPace expects to meet with the agency on an accelerated timeline, with a full PMA submission planned for the second half of 2025. For deeper insights into NeuroPace’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, NeuroPace Inc. reported its second-quarter 2025 earnings, highlighting a revenue increase to $23.5 million, marking a 22% year-over-year growth. This figure surpassed both Wells Fargo’s estimate of $22.9 million and consensus expectations of $23.1 million. Despite the positive revenue figures, the company experienced a larger-than-expected loss per share. However, NeuroPace has raised its full-year revenue guidance to between $94 million and $98 million, indicating confidence in its strategic plans. Wells Fargo responded to these developments by lowering its price target for NeuroPace to $15 from $17, while maintaining an Overweight rating on the stock. These updates reflect the company’s ongoing efforts to enhance its financial performance and strategic initiatives.
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