TransMedics price target raised to $150 from $130 at Oppenheimer

Oppenheimer raised its price target on TransMedics Group (NASDAQ:TMDX), a $4.8 billion market cap organ transplant technology company, to $150 from $130 on Tuesday, while maintaining an Outperform rating. According to InvestingPro data, the stock has delivered an impressive 116% return over the past six months, though current analysis suggests it may be trading above its Fair Value.

The price target increase follows the June 2 removal of an "air transport" warning from the label of competitor OrganOx’s metra device, according to Oppenheimer. The firm noted this development was largely expected, though it only identified the FDA approval order after a client brought it to their attention on Monday. InvestingPro analysis shows six analysts have recently revised their earnings upwards for TransMedics, with comprehensive research reports available for deeper insights into the company’s competitive position.

Oppenheimer reported that OrganOx continues to receive positive attention from the organ procurement organization (OPO) community, though field checks on outcomes with the metra device remain "relatively mixed."

The research firm believes OrganOx’s metra should gain donation after circulatory death (DCD) liver share, not necessarily due to superior outcomes compared to TransMedics, but because of "frayed" relationships between TransMedics and OPOs.

Despite competitive pressures, Oppenheimer observed that TransMedics "seems to be holding up reasonably well" based on the firm’s monthly tracking data, supporting the decision to increase the price target. The company maintains strong financial health with a current ratio of 9.1 and operates with moderate debt levels, according to InvestingPro metrics.

In other recent news, TransMedics Group reported impressive financial results for the first quarter of 2025, with revenue reaching $143.5 million, significantly surpassing the forecasted $123.66 million. The company achieved an earnings per share of $0.70, well above the anticipated $0.26, marking a robust operational performance. Following these results, Oppenheimer raised TransMedics’ stock price target to $130, maintaining an Outperform rating, while Piper Sandler increased the target to $145 with an Overweight rating. Both firms expressed confidence in the company’s growth prospects despite some operational challenges noted in May, including a decline in organ transplant volumes and flight activity. TransMedics has also adjusted its full-year revenue guidance upward to a range of $565 million to $585 million, exceeding previous estimates. The company’s U.S. revenue breakdown for the quarter included significant contributions from liver, heart, and lung transplants, with liver transplants being a key growth driver. Analysts from Piper Sandler believe TransMedics is on track to exceed consensus sales estimates for the second quarter of 2025, citing strong momentum in recent months.

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