NeuroPace’s Strong Q1 Performance and Promising Growth Prospects Affirm Buy Rating

In a report released on May 8, Mike Kratky from Leerink Partners reiterated a Buy rating on NeuroPace (NPCE – Research Report), with a price target of $20.00.

Mike Kratky has given his Buy rating due to a combination of factors surrounding NeuroPace’s recent financial performance and future prospects. The company’s first quarter 2024 revenues surpassed expectations by approximately 5%, indicating robust commercial execution. Moreover, NeuroPace’s reaffirmation of its full-year 2024 revenue guidance suggests a stable outlook, with potential for exceeding these forecasts as the year progresses. Kratky’s optimism is further bolstered by NeuroPace’s strategic growth initiatives, including the expansion of its Responsive Neurostimulation (RNS) System within its primary market and the ongoing Project CARE pilot, which could broaden RNS adoption.

NeuroPace’s RNS System’s increasing prescriber base, reaching a record high, provides a positive signal of a strong core business with future growth potential. Additionally, the anticipated results from the pivotal NAUTILUS study, expected in the first half of 2025, present an opportunity for RNS to become the first FDA-approved neuromodulation device for generalized drug-resistant epilepsy (DRE), positioning the company for a significant market expansion. These elements, combined with a solid first-quarter performance and a gross margin that remains robust, underpin Kratky’s Buy rating and his continued positive outlook on NeuroPace’s stock.

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

NPCE’s price has also changed dramatically for the past six months – from $7.250 to $12.600, which is a 73.79% increase.

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NeuroPace (NPCE) Company Description:

NeuroPace Inc is a commercial-stage medical device company focused on transforming the lives of people suffering from epilepsy by reducing or eliminating the occurrence of debilitating seizures. It derives substantially all its revenue from the sales of RNS System to hospitals facilities (typically Level 4 CECs) that implant RNS System.