NeuroPace’s Strategic Advancements and Revenue Growth Underpin Buy Rating Despite Challenges

NeuroPace, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Yi Chen from H.C. Wainwright reiterated a Buy rating on the stock and has a $18.00 price target.

Yi Chen has given his Buy rating due to a combination of factors related to NeuroPace’s recent financial performance and strategic advancements. The company reported a strong second quarter in 2025, with revenue surpassing expectations and showing a significant year-over-year growth. Despite a higher net loss than anticipated, the growth in revenue from the RNS system and the increase in active accounts and prescribers indicate a positive trajectory for the company. Additionally, the favorable outcome in CMS’s FY2026 IPPS final rule ensures reimbursement stability for Medicare patients, which is a crucial aspect for future revenue stability.
Furthermore, NeuroPace is making strides in expanding the indications for its RNS system. The ongoing NAUTILUS study aims to extend the system’s use to patients with drug-resistant idiopathic generalized epilepsy (IGE). Although the study did not meet the primary effectiveness endpoint, the data showed promising results in secondary endpoints, including a significant reduction in seizures. The company’s decision to submit this data to the FDA, supported by the Breakthrough Device designation and the lack of effective treatments for this population, suggests potential for future market expansion. These factors collectively underpin Yi Chen’s Buy rating for NeuroPace.

In another report released yesterday, Lake Street also reiterated a Buy rating on the stock with a $20.00 price target.

Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NPCE in relation to earlier this year.