TransMedics stock price target raised to $130 at Oppenheimer

On Friday, Oppenheimer analysts increased the price target for TransMedics Group (NASDAQ:TMDX) to $130 from $125, maintaining an Outperform rating on the stock. The revision follows TransMedics’ reported first-quarter 2025 revenue of $144 million, surpassing both Oppenheimer’s and the consensus estimates of $130 million and $124 million, respectively. The company, currently valued at $3.15 billion, has demonstrated impressive revenue growth of 64.4% over the last twelve months, according to InvestingPro data. The U.S. revenue breakdown for the quarter was $139 million, which included $109 million from liver, $26.3 million from heart, and $3.6 million from lung transplants.

TransMedics’ U.S. transplant market shares for the quarter were calculated at 24% for heart, 36% for liver, and 4% for lung. NOP logistics, an integral part of the company’s operations, contributed $26.1 million in revenue. Based on an average service price of approximately $26,500 per flight, this indicates around 985 logistics runs, with an attach rate of about 78%. The company experienced minimal impact from tariffs during the quarter.

For the fiscal year 2025, TransMedics has increased its revenue forecast to a range between $565 million and $585 million, up from the previous range of $530 million to $552 million. This new guidance exceeds the $543 million revenue estimate previously agreed upon by analysts. The stock has shown strong momentum with a 49.5% year-to-date return, though it trades at a relatively high P/E ratio of 88.5. Detailed valuation metrics and growth projections are available through InvestingPro’s exclusive research platform. The upward revision in the company’s financial outlook is attributed to significant share gains in the liver and heart segments, with increases of 450 basis points and 110 basis points, respectively. These gains occurred in a context where the liver and heart markets grew by 6.8% and 1.1% sequentially. Despite heightened competition, liver transplants remain the primary growth driver for TransMedics.

In response to these developments, Oppenheimer has revised its estimates based on the first-quarter results and the updated fiscal year 2025 guidance, leading to the new price target of $130 for TransMedics stock.

In other recent news, TransMedics Group Inc . reported its financial results for the first quarter of 2025, showcasing significant achievements in earnings and revenue. The company reported an earnings per share of $0.70, which surpassed the forecasted $0.26. Revenue reached $143.5 million, exceeding the expected $123.66 million, marking a 48% increase compared to the previous year. TransMedics also raised its full-year revenue guidance to a range between $565 million and $585 million, reflecting anticipated growth of 28-32%. The company noted strong growth in U.S. transplant and product revenue, with U.S. transplant revenue alone reaching $139 million, a 51% increase year-over-year. Additionally, TransMedics plans to enhance its operating margin by 400 basis points in 2025. The company is also focusing on clinical trials as a catalyst for future growth, with new heart and lung programs expected to launch later this year. These developments underscore TransMedics’ robust operational performance and strategic initiatives in the transplant market.

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