TransMedics Group (TMDX) Buy Rating Affirmed Amid Rising Market Share and Competitive Edge

Analyst Josh Jennings of TD Cowen reiterated a Buy rating on TransMedics Group (TMDX – Research Report), retaining the price target of $175.00.

Josh Jennings has given his Buy rating due to a combination of factors concerning TransMedics Group’s impressive first-half performance in 2024 and their competitive positioning in the market. The TransMedics Group, identified by its ticker TMDX, is experiencing significant market share gains in the utilization of their organ preservation systems, particularly in the domain of donation after cardiac death (DCD) for heart and liver transplants. This upward trajectory in market share is underscored by the company’s heart case share, which has risen from 66% to approximately 72%, and its liver case share, which has increased from the mid-50s to over 60%.
Moreover, despite initial worries regarding the potential challenges from the adoption of normothermic regional perfusion (NRP) by certain US transplant centers, Jennings’s research indicates that these concerns have not materialized into tangible threats to TMDX’s momentum. The reluctance to adopt NRP is attributed to its associated high costs, significant resource demands, and lack of superior clinical outcomes. This context suggests that TransMedics Group is likely to continue its ascendancy in market share, providing a solid foundation for the Buy rating that Jennings has advocated.

In another report released on September 27, Robert W. Baird also maintained a Buy rating on the stock with a $200.00 price target.

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TransMedics Group (TMDX) Company Description:

TransMedics Group, Inc. is a commercial stage medical technology company, which engages in the development and commercialization of organ care system platform. It focuses on the preservation of human organs for transplant in a near-physiologic condition to address the limitations of cold storage organ preservation. The company was founded by Waleed H. Hassanein in October 2018 and is headquartered in Andover, MA.