NeuroPace stock target cut to $17 by Cantor Fitzgerald

Monday, Cantor Fitzgerald’s Ross Osborn adjusted the price target for NeuroPace Inc (NASDAQ:NPCE) to $17 from the previous $20, while maintaining an Overweight rating on the stock. Currently trading at $10.42, the stock has experienced significant volatility, with a 61.3% surge over the past six months despite a recent 15.3% weekly decline. The revision followed NeuroPace’s presentation of its Long-Term Post-Approval Study (PAS) data for the RNS System at the 2025 American Academy of Neurology (AAN) Annual Meeting. According to InvestingPro, analysts maintain a strong buy consensus with targets ranging from $14 to $20.

NeuroPace shared positive primary effectiveness data and interim safety results from the PAS, which Osborn believes could increase the RNS System’s adoption. The data was discussed in detail during a dinner with NeuroPace’s management team and clinicians after the presentation. These discussions highlighted the company’s key initiatives for the current year and the future. InvestingPro data reveals strong revenue growth of 22.1% in the last twelve months, with analysts forecasting 18% growth for the upcoming year.

The company’s efforts to expand physician awareness and penetrate the community setting with Project CARE are expected to drive incremental adoption of the RNS System. Project CARE is an initiative aimed at broadening the reach of NeuroPace’s technology, which is a significant factor considered by Cantor Fitzgerald in maintaining the Overweight rating.

Despite the reduction in the price target, the analyst’s outlook for NeuroPace remains positive based on the company’s potential to increase the adoption of its RNS System. This system is designed to provide an innovative treatment option for patients with neurological disorders.

NeuroPace’s presentation at the AAN Annual Meeting and subsequent discussions with the analyst appear to have reinforced confidence in the company’s direction and strategy, as reflected in the maintained Overweight rating. The updated price target of $17 takes into account the latest data and market conditions as assessed by Cantor Fitzgerald.

In other recent news, NeuroPace Inc. reported a 19% year-over-year revenue increase for the fourth quarter of fiscal year 2024, with revenue reaching $21.5 million. This figure slightly surpassed the FactSet consensus of $20.7 million and was in line with Cantor Fitzgerald’s expectation of $21.6 million. The growth was driven by increased sales of the company’s RNS System and DIXI Medical (TASE:BLWV) products. NeuroPace has also confirmed its revenue guidance for fiscal year 2025, indicating confidence in its business trajectory.

Additionally, Cantor Fitzgerald analyst Ross Osborn recently revised the company’s price target to $17.00 from $20.00, maintaining an Overweight rating. The adjustment followed discussions with management and highlighted positive data from the Post-Approval Study (PAS) of the RNS System. NeuroPace also announced the termination of its SEEG product distribution by the fourth quarter of 2025, aiming to concentrate resources on the RNS System. Despite this strategic shift, the company maintains its 2025 revenue outlook and expects to achieve a cash flow breakeven by the end of 2027.

Moreover, a three-year study of the RNS System revealed a median seizure reduction of 82% in adults with drug-resistant focal epilepsy, further solidifying the system’s effectiveness. These developments underscore NeuroPace’s ongoing efforts to expand the reach of its core product and enhance its financial performance.

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