Optimistic Outlook for NeuroPace: Buy Rating Justified by Subgroup Success and Growth Potential

J.P. Morgan analyst Rohin K Patel has maintained their bullish stance on NPCE stock, giving a Buy rating yesterday.

Rohin K Patel has given his Buy rating due to a combination of factors that highlight the potential of NeuroPace’s therapy despite some setbacks. Although the NAUTILUS study did not achieve statistical significance in its primary endpoint, it showed promising results in a subgroup of patients with fewer baseline seizures, indicating the therapy’s potential effectiveness in this population. This subgroup finding, coupled with significant secondary endpoint results such as median seizure reduction and responder rates, suggests a viable path to FDA approval, at least for a subset of patients.
Furthermore, management’s confidence in achieving their 2025 guidance and maintaining a long-term revenue plan underscores the company’s growth potential. The potential for FDA approval, even if limited to a specific patient group, along with future innovations in software and next-generation RNS, supports an optimistic outlook for NeuroPace’s growth trajectory. These factors collectively justify Rohin K Patel’s Buy rating, as they indicate both immediate and long-term opportunities for the company.

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

Based on the recent corporate insider activity of 26 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.