TransMedics stock price target raised to $147 from $142 at Canaccord Genuity

Investing.com - Canaccord Genuity raised its price target on TransMedics Group (NASDAQ:TMDX) to $147.00 from $142.00 on Thursday, while maintaining a Buy rating on the stock. The new target represents potential upside from the current price of $134.32, though InvestingPro data indicates the stock is trading slightly above its Fair Value.

The medical technology company reported revenue of $143.8 million, slightly below the consensus estimate of $144.6 million. Canaccord noted this slight miss might drive the stock down despite what it called a "solid overall quarter and guidance increase." TransMedics has demonstrated impressive revenue growth of 48.09% over the last twelve months, with total revenue reaching $531.29 million in that period.

The firm attributed the quarterly performance to expected seasonality in the Q3 transplant market, which TransMedics management had previously communicated to investors. Canaccord suggested any dip in share price could present a "buying opportunity for longer-term investors." InvestingPro data shows the stock has delivered strong returns of 63.96% over the past year and 115.43% year-to-date, though its RSI suggests it may be in overbought territory.

Canaccord highlighted several future growth drivers for TransMedics that it believes aren’t fully reflected in current projections, including Heart and Lung clinical trials with new devices in the US, implementation of NOP and logistics outside the US, and US OCS Kidney developments. With an overall financial health score rated as "GREAT" by InvestingPro, the company appears well-positioned to pursue these growth initiatives.

The price target increase from $142 to $147 was attributed to an increase in the comparable group multiple, with Canaccord keeping its forward estimates "relatively unchanged" while reiterating its Buy rating. Analysts covering the stock have set targets ranging from $114 to $170, with TransMedics currently trading at a P/E ratio of 65.88, reflecting the premium investors are willing to pay for its growth potential. For deeper insights and 17 more ProTips on TransMedics, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, TransMedics Group reported its third-quarter earnings for 2025, revealing a significant earnings per share (EPS) beat while slightly missing revenue expectations. The company achieved an EPS of $0.66, surpassing the anticipated $0.36, marking an 83.33% surprise. Revenue was reported at $143.8 million, just under the forecasted $144.59 million. Needham reiterated a Buy rating for TransMedics, maintaining a price target of $148.00, despite the revenue miss. The company experienced slower revenue growth of 32% in the third quarter, compared to 38% in the previous quarter. Liver transplant technology was the primary growth driver, with a 41% increase, followed by heart solutions at 14%. These developments reflect recent performance and projections for TransMedics.

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