Josh Jennings, an analyst from TD Cowen, maintained the Buy rating on TransMedics Group (TMDX – Research Report). The associated price target remains the same with $120.00.
Josh Jennings has given his Buy rating due to a combination of factors including TransMedics Group’s strong fourth-quarter performance and optimistic future revenue projections for 2025. The company reported revenues of $121.6 million, surpassing the consensus estimate of $109.6 million, marking a 50% increase from the previous year and a 12% rise from the last quarter. This robust financial performance, particularly in their transplant logistics services, which saw a significant year-over-year growth, indicates a positive trajectory for the company.
Additionally, Jennings notes that concerns raised by a recent short-seller’s report have been mitigated by an independent review that found no misconduct and by the company’s comprehensive response to the allegations. The company’s gross margin improvement and the expectation that inventory-related charges will not recur further support the positive outlook. With a strong cash position and operating profit, TransMedics Group appears well-positioned for continued growth, justifying the Buy rating.
Jennings covers the Healthcare sector, focusing on stocks such as Vericel, Alphatec Holdings, and Boston Scientific. According to TipRanks, Jennings has an average return of 7.7% and a 54.12% success rate on recommended stocks.