H.C. Wainwright raised its 12-month price target on NeuroPace Inc to $19.00 from $18.00 and retained a Buy rating on the medical device company's shares. The stock is currently trading at $16.23, leaving the company with an approximate market capitalization of $541 million and a trailing price-to-earnings ratio of -21.6.
The broker's decision to lift the target came after NeuroPace released preliminary financials for the fourth quarter and full year 2025. For Q4 2025, the company reported total revenue of $26.6 million, a 24% increase year-over-year, including $22.4 million attributable to sales of its RNS - responsive neurostimulation - system. For the full year 2025, NeuroPace posted total revenue of $100 million, up 25% from the prior year, with RNS revenue representing $81.7 million of that total.
Management credited the revenue expansion to robust demand for the RNS system and disciplined execution across the business. Data compiled by InvestingPro shows analysts remain broadly positive on the shares, with price targets ranging from $15 to $22.
On liquidity, InvestingPro data indicates NeuroPace holds a current ratio of 4.86, signaling that reported liquid assets exceed short-term obligations. The company also provided a forward-looking revenue view, guiding 2026 total revenue to a range of $98 million to $100 million, which the company said would equate to roughly 20-22% growth in its core RNS business.
NeuroPace plans to reclassify reporting for its DIXI-related results as discontinued operations beginning in the first quarter of 2026, with management signaling a continued emphasis on high-margin personalized neuromodulation offerings.
In explaining its valuation change, H.C. Wainwright increased its enterprise-value-to-revenue multiple to 6.5x from 6.0x. The firm cited the potential for approval of an indication for idiopathic generalized epilepsy, or IGE, in the second half of 2026 as a rationale for the higher multiple.
Additional detail in the company's preliminary results reiterated the Q4 total revenue figure of $26.6 million and the fiscal 2025 total of approximately $100 million, both representing healthy year-over-year gains. The company noted RNS revenue increased by 26% to $22.4 million in the fourth quarter, and that it has submitted a Premarket Approval Supplement application to the U.S. Food and Drug Administration to expand the RNS System's indication to include treatment of drug-resistant idiopathic generalized epilepsy.
NeuroPace's submission is supported by positive outcomes from the NAUTILUS trial, which the company says produced a 77% median reduction in generalized tonic-clonic seizures at 18 months. The RNS System has been granted Breakthrough Device Designation for this indication, and UBS has reiterated a Buy rating on the stock, citing the company's financial performance and encouraging trial data.
Summary takeaways:
- H.C. Wainwright raised the price target to $19 while keeping a Buy rating.
- Preliminary Q4 revenue of $26.6 million and full-year 2025 revenue of $100 million reflect double-digit growth driven by the RNS system.
- The company is pursuing expanded FDA indication for IGE and will report DIXI-related activity as discontinued operations in 2026.