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Investing.com - Stifel initiated coverage on TransMedics Group (NASDAQ:TMDX) with a Hold rating and a $115.00 price target on Wednesday. According to InvestingPro data, the company’s stock has shown remarkable growth with a 79% year-to-date return, though it currently trades at a high P/E multiple of 50.
The research firm based its rating on proprietary survey results from 19 U.S. transplant surgeons, which it characterized as "mixed" regarding the company’s organ care system (OCS) technology.
Stifel’s analysis suggests three key market dynamics: U.S. donor growth is likely to slow, organ utilization expansion should continue, but TransMedics’ OCS may face increased market share pressure from competition.
The firm acknowledged that TransMedics has "undoubtedly transformed organ preservation" and pioneered a shift in transplant therapy, helping to address the gap between donor organs and transplant procedure volume.
While Stifel sees compelling opportunities for TransMedics in both the near term with Next-Gen OCS Heart/Lung products and long term with OCS Kidney, it believes the risk-reward balance is appropriate at current stock levels given the survey findings.
In other recent news, TransMedics Group reported impressive financial results for the second quarter of 2025, significantly surpassing market expectations. The company achieved an earnings per share of $0.92, more than doubling the forecast of $0.45, marking a surprise of 104.44%. Revenue also exceeded projections, reaching $157.4 million compared to the anticipated $146.74 million, a 7.26% increase. Additionally, the U.S. Food and Drug Administration granted TransMedics conditional approval for its Next-Generation OCS ENHANCE Heart trial. This trial aims to explore prolonged heart perfusion and demonstrate the superiority of the OCS Heart System over traditional methods in certain cases, involving over 650 patients. Furthermore, TD Cowen reaffirmed its Buy rating on TransMedics, emphasizing the company’s strong competitive position in the organ transplant market. This reaffirmation came after discussions with TransMedics’ CEO and CFO, particularly in light of Terumo’s acquisition of OrganOx. These developments reflect ongoing advancements and positive momentum for TransMedics Group.
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