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On Wednesday, Piper Sandler analysts raised the price target for TransMedics Group (NASDAQ:TMDX) stock to $145 from $125, while maintaining an Overweight rating. The move comes as the company’s stock has surged over 106% year-to-date, though InvestingPro data suggests the stock is currently trading above its Fair Value. The analysts noted some weakness in organ transplant volumes and flight activity in May, but expressed confidence in the company’s position for the second quarter.
The analysts highlighted that transplant volumes and flights by TransMedics’ medical jet fleet showed a decline in May compared to April’s record performance. Transplant volumes fell by mid-single digits, with liver and heart transplants being notably affected. Despite this, the analysts remain optimistic due to the ongoing adoption of machine perfusion, particularly in liver donation after brain death (DBD) procedures. This optimism appears well-founded, as the company has demonstrated impressive revenue growth of 64% and maintains a healthy gross margin of 59%.Want deeper insights? InvestingPro subscribers have access to 15+ additional exclusive tips and comprehensive financial analysis for TMDX.
The report also mentioned a mid-single-digit decrease in flight counts for TransMedics’ planes, partly attributed to maintenance on two aircraft. Management has communicated that more maintenance is expected throughout the second half of 2025.
Despite these challenges, the analysts believe that TransMedics is on track to exceed consensus sales estimates for the second quarter of 2025. The firm reiterated its Overweight rating, citing the company’s strong momentum in recent months.
In other recent news, TransMedics Group has reported impressive financial results for the first quarter of 2025, with revenue reaching $144 million, surpassing both Oppenheimer’s and consensus estimates. The company’s earnings per share (EPS) were $0.70, significantly exceeding the forecasted $0.26. TransMedics has raised its full-year revenue guidance to between $565 million and $585 million, an increase from the previous range of $530 million to $552 million. This adjustment reflects the company’s strong performance in the U.S. transplant market, particularly in liver and heart transplants. Oppenheimer analysts have responded by raising the price target for TransMedics stock to $130, maintaining an Outperform rating. The company also reported a 48% year-over-year increase in total revenue, with U.S. transplant revenue climbing 51%. TransMedics is planning to launch new heart and lung clinical programs later in the year, which are expected to drive further growth. These developments indicate a robust operational performance and strategic initiatives that are strengthening TransMedics’ market position.
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