Buy Rating for NeuroPace: Strong Revenue Growth and Efficacy of RNS System Drive Investment Appeal

NeuroPace (NPCE) has received a new Buy rating, initiated by H.C. Wainwright analyst, Yi Chen.

Yi Chen has given his Buy rating due to a combination of factors including NeuroPace’s solid revenue growth and the impressive efficacy of its responsive neurostimulation (RNS) system. NeuroPace, a commercial-stage medical device company, has developed a brain-responsive neuromodulation system that provides personalized, real-time treatment for patients with drug-resistant focal epilepsy. The RNS system, approved in 2013, continuously monitors brain activity and delivers electrical pulses to prevent seizures, demonstrating significant seizure reduction in clinical settings.
Furthermore, the company’s financial performance has been strong, with a reported $79.9 million in revenue for 2024, marking a 22% year-over-year growth. Management projects continued growth with a revenue forecast of $93-97 million for 2025, representing a 16-21% increase. The stock has shown over 150% price appreciation in the past year, and the recent data from the NAUTILUS study offers an attractive entry point for investors. Additionally, real-world data supports the system’s efficacy and safety, with significant seizure frequency reduction observed in both clinical trials and real-world studies.

In another report released yesterday, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $16.00 price target.