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Investing.com - NeuroPace Inc (NASDAQ:NPCE) maintained its Overweight rating and $16.00 price target from Cantor Fitzgerald on Tuesday, despite the stock dropping approximately 46% from its year-to-date high. According to InvestingPro data, analyst targets range from $13 to $20, with three analysts recently revising their earnings expectations upward for the upcoming period.
The research firm highlighted that NeuroPace shares have fallen from $18.13 on May 22, while the S&P 500 gained about 3% during the same period, creating what it describes as an attractive entry point for investors.
Cantor Fitzgerald expects NeuroPace to achieve over 20% growth in RNS (Responsive Neurostimulation) implants, with potential additional growth from expanded indications. The firm also anticipates gross margins to exceed 80% as headwinds related to the DIXI divestiture subside. Recent performance supports this outlook, with InvestingPro data showing revenue growth of 23.3% and current gross margins of 75.7%. Get the full analysis and 7 additional key insights with an InvestingPro subscription.
The research note addressed NeuroPace’s NAUTILUS clinical trial for idiopathic generalized epilepsy (IGE), which did not meet its primary endpoint in the overall population. Despite this setback, the company reported more than 80% median seizure reduction at one year, surpassing results seen when RNS was initially approved for focal epilepsy.
Patients with lower baseline seizure frequency (≤2 per month) achieved a statistically significant benefit on the primary endpoint, which Cantor Fitzgerald views as reinforcing the system’s clinical utility and potential for label expansion.
In other recent news, NeuroPace Inc. reported its second-quarter 2025 earnings with a revenue increase to $23.5 million, marking a 22% year-over-year growth. This figure exceeded both Wells Fargo’s estimate of $22.9 million and the consensus expectations of $23.1 million. Despite reporting a larger-than-expected loss per share, the company has raised its full-year revenue guidance to between $94 million and $98 million, indicating confidence in its strategic initiatives. Wolfe Research responded by lowering its price target for NeuroPace to $13 from $15, while maintaining an Outperform rating. The firm acknowledged the company’s revised 2025 revenue guidance, which now stands $2 million higher at the midpoint than originally forecasted. Similarly, Wells Fargo adjusted its price target to $15 from $17, maintaining an Overweight rating despite the wider loss forecast. These developments reflect ongoing adjustments and expectations from analysts regarding NeuroPace’s financial trajectory.
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