LeoPatrizi Shares of TransMedics Group ( NASDAQ: TMDX ) snapped two back-to-back sessions of losses on Wednesday as Needham launched its coverage with a buy rating and a Street high target of $208, expecting the organ transplant company to generate profits this year. Founded in 1998, Andover, Massachusetts-headquartered TransMedics Group ( TMDX ) has already generated $3M of net income over the past 12 months on $358.8M in revenue.
"TMDX should turn profitable in 2024E, and we expect rapid improvements in its operating margin, EPS, and cash flow in 2025E-2026E," Needham analyst Mike Matson wrote, highlighting the company's Organ Care System (OCS), a portable device for preservation of donated organs. Matson argued that, backed by wide-ranging clinical trial data and multiple FDA approvals supporting OCS, the company is positioned to access the vast and underpenetrated organ transplant market (where market penetration stands below 6%). He added that TMDX's revenue growth accelerated to 209% in 2022 from 18% in 2021 when the company launched its National OCS Program (NOP), a turnkey organ procurement service available for transplant centers.
“We believe that TMDX's valuation is reasonable considering its growth rate and potential for upside to consensus,” wrote Matson. More on TransMedics Group TransMedics: Heart And Lungs Will Drive The Next Leg Higher Betting Big On TransMedics (Q2 2024 Update) TransMedics: Strong Execution And Management Conservatism Is A Recipe For Success TransMedics Group GAAP EPS of $0.35 beats by $0.
14, revenue of $114.3M beats by $15.34M TransMedics Group Q2 2024 Earnings Preview.
