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Cantor Fitzgerald maintained its Overweight rating and $16.00 price target on NeuroPace Inc (NASDAQ:NPCE) Monday following a survey of medical professionals regarding the company’s RNS System. According to InvestingPro data, analysts are broadly bullish on the stock, with targets ranging from $15 to $20, suggesting significant upside potential from current levels. The company, valued at $363 million, has seen its stock surge over 71% in the past year despite recent volatility. The investment firm surveyed 30 physicians, including epileptologists, neurologists, and neurosurgeons, to assess perceptions around potential FDA approval and adoption of the RNS System for idiopathic generalized epilepsy (IGE).
The survey results increased Cantor Fitzgerald’s confidence in NeuroPace’s ability to receive FDA approval for its RNS System in the IGE patient population. The majority of physician respondents viewed the NAUTILUS data positively and believed the company would receive an expanded indication for its neurostimulation device. This potential expansion comes as the company demonstrates strong revenue growth, with InvestingPro reporting a 22% year-over-year increase in sales. Get access to 10+ additional ProTips and comprehensive analysis with an InvestingPro subscription.
The research also sought to better understand clinical awareness, treatment preferences, and referral patterns related to the RNS System in community practice. Cantor Fitzgerald’s analysis suggests potential for increased adoption of NeuroPace’s technology if FDA approval is granted for the expanded indication.
The $16.00 price target represents significant upside potential from NeuroPace’s current trading levels. The medical device company specializes in implantable neurostimulation solutions for patients with epilepsy.
The maintained Overweight rating comes as NeuroPace continues to develop its responsive neurostimulation technology, which is designed to detect and respond to specific brain activity patterns associated with seizures. The company’s RNS System is currently approved for certain types of epilepsy, with the potential IGE indication representing a possible expansion of its addressable market.
In other recent news, NeuroPace Inc. has secured a $75 million credit facility with MidCap Financial, which includes a $60 million term loan and a $15 million revolving credit facility. The company plans to utilize these funds to enhance patient access to its RNS System and invest in growth initiatives. Meanwhile, NeuroPace’s financial outlook has received positive attention from analysts. H.C. Wainwright initiated coverage with a Buy rating and an $18 price target, citing solid revenue growth and the effectiveness of the RNS system. The firm noted that NeuroPace’s revenue for the full year 2024 reached $79.9 million, marking a 22% increase year-over-year, with expectations for continued growth.
UBS also reiterated a Buy rating with an $18 price target, following a physician survey that suggested a favorable market outlook for NeuroPace’s neurostimulation therapy. Cantor Fitzgerald maintained its Overweight rating and a $16 price target, expressing confidence in the potential FDA approval for the RNS System’s expanded indication. Although the NAUTILUS study did not meet its primary endpoint, Cantor Fitzgerald remains optimistic about the system’s adoption in treating idiopathic generalized epilepsy. These developments highlight NeuroPace’s ongoing efforts to strengthen its market position and financial performance.
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