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Investing.com - Needham upgraded TransMedics Group (NASDAQ:TMDX) from Hold to Buy on Thursday, setting a price target of $148.00. The medical technology company has demonstrated impressive performance, with revenue growing 48% over the last twelve months and maintaining healthy gross margins of nearly 60%.
The upgrade comes after Needham’s transplant tracker indicated TransMedics’ U.S. sales are likely to exceed consensus expectations for the third quarter of 2025, based on the latest Scientific Registry of Transplant Recipients data.
Needham expects TransMedics’ new heart and lung clinical trials, along with international expansion efforts, to become increasingly important growth drivers during 2026.
The research firm also highlighted rapidly improving margins at TransMedics, which it believes will lead to meaningful earnings per share upside for the medical technology company.
While competition remains a potential risk, Needham believes TransMedics maintains a significant lead in what it describes as a "still significantly underpenetrated market" for organ transplant technology.
In other recent news, TransMedics Group Inc . reported impressive financial results for Q2 2025, with total revenue reaching $157.4 million, representing a 38% increase compared to the same period last year. The company has also raised its full-year revenue guidance to a range of $585-$605 million, indicating a projected 35% growth. These developments underscore TransMedics’ continued focus on innovation and market expansion. Despite the strong financial performance, the company’s stock experienced a decline in premarket trading. Investors will likely watch closely how TransMedics continues to execute its growth strategy amid these positive revenue projections.
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