Wells Fargo upgrades NeuroPace to Overweight, raises price target to $20

As previously reported, Wells Fargo upgraded NeuroPace to Overweight from Equal Weight with a price target of $20, up from $16. The firm expects the debate to shift from execution to TAM expansion. Wells’ analysis demonstrates potential upside to 2024 numbers and beyond as NeuroPace expands access to RNS outside of Level 4 CECs. The firm does not believe that management has contemplated meaningful revenues in the 2024 guide from Project CARE and as such, it sees potential for upside revisions. While shares are up about 30% year-to-date vs. 8% for the S&P, Wells likes the setup as NeuroPace expands into the community setting and does not believe the Project CARE opportunity is priced in.