NeuroPace initiated with an Outperform at Leerink

Leerink analyst Mike Kratky initiated coverage of NeuroPace with an Outperform rating and $22 price target. The firm notes NeuroPace has seen a major runup since the start of 2023, primarily driven by commercial outperformance of its key brain-responsive neuromodulation system in adults with focal drug-resistant epilepsy. However, Leerink sees significant additional upside potential for NeuroPace’s shares from here, driven by continued penetration of RNS in its core commercial market of about 24k U.S. adults with focal DRE treated in Level 4 comprehensive epilepsy centers annually, ongoing initiatives to support RNS adoption among the remaining 550k U.S. adults with focal DRE treated outside of Level 4 CECs, and topline results from NeuroPace’s pivotal NAUTILUS study in the first half of 2025 representing a relatively de-risked and underappreciated expansion opportunity for RNS to become the first FDA-approved neuromodulation device in generalized DRE.