TransMedics Group stock initiated at Buy by Jefferies with $145 price target

Investing.com - TransMedics Group (NASDAQ:TMDX) received a Buy rating from Jefferies as the firm initiated coverage on the organ transplant technology company with a $145.00 price target. The stock, which has surged 72% year-to-date, currently trades near its InvestingPro Fair Value, with analyst targets ranging from $114 to $170.

Jefferies analyst Young Li highlighted TransMedics as a pioneer in organ transplants that has developed differentiated technology and an innovative service/transport model, enabling higher utilization and greater penetration for livers, hearts, and lungs.

The firm projects above-consensus growth for TransMedics in 2027, forecasting 22% growth compared to the 19% consensus estimate, driven by next-generation heart and lung trials.

Jefferies expects TransMedics to expand to approximately 30,000 organs by around 2032, with growth primarily coming from the kidney and international markets.

TransMedics Group develops and commercializes organ care systems that preserve organ function, allowing transplant teams more time to assess organ viability for transplantation.

In other recent news, TransMedics Group has announced a strategic partnership with Mercedes-Benz Group to establish an organ transport network in Italy. This collaboration will see the deployment of specialized Mercedes-Benz V-Class vehicles dedicated to organ transportation, with four hubs set to launch by the end of 2025 in Milan, Rome, Padua, and Bari. Additionally, TransMedics received a boost as Evercore ISI initiated coverage with an Outperform rating, citing a potential 35% upside and noting the company’s competitive service costs and improved patient outcomes. On a different note, Stifel initiated coverage with a Hold rating, based on mixed survey results from U.S. transplant surgeons regarding the company’s organ care system technology.

Meanwhile, TD Cowen reaffirmed a Buy rating on TransMedics, emphasizing its strong position in the organ transplant market amid competitive dynamics. In another significant development, the U.S. Food and Drug Administration granted conditional approval for TransMedics’ Next-Generation OCS ENHANCE Heart trial. This trial, which is set to become the largest heart preservation for transplant study worldwide, will explore prolonged heart perfusion and its superiority over traditional methods. These recent developments highlight TransMedics’ ongoing efforts to innovate and expand its presence in the organ transplant sector.

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