Here's What Analysts Are Forecasting For NeuroPace, Inc. (NASDAQ:NPCE) After Its Third-Quarter Results

A week ago, NeuroPace, Inc. (NASDAQ:NPCE) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. The results overall were pretty good, with revenues of US$21m exceeding expectations and statutory losses coming in at justUS$0.19 per share, some 31% below what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for NeuroPace

Taking into account the latest results, the consensus forecast from NeuroPace's seven analysts is for revenues of US$90.9m in 2025. This reflects a decent 19% improvement in revenue compared to the last 12 months. Per-share losses are predicted to creep up to US$1.01. Before this latest report, the consensus had been expecting revenues of US$88.7m and US$1.01 per share in losses.

The consensus price target held steady at US$14.29despite the upgrade to revenue forecasts and ongoing losses. The analysts seems to think the business is otherwise performing roughly in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on NeuroPace, with the most bullish analyst valuing it at US$20.00 and the most bearish at US$8.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 15% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.3% annually. So it's pretty clear that NeuroPace is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$14.29, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple NeuroPace analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for NeuroPace that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.