In a report released today, Josh Jennings from TD Cowen maintained a Buy rating on TransMedics Group, with a price target of $170.00.
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Josh Jennings has given his Buy rating due to a combination of factors including TransMedics Group’s strong financial performance and optimistic future outlook. The company reported impressive Q2 results with sales and earnings per share significantly exceeding market expectations. This was driven by robust growth in both product and service revenues, with notable increases in liver and heart organ revenues. Additionally, the company’s operational efficiency is reflected in its improved gross and operating margins, as well as a substantial increase in net income.
TransMedics Group also raised its full-year revenue guidance, indicating confidence in continued growth. The company expects this growth to be fueled by the expansion of transplant volumes, increased adoption of its Organ Care System (OCS), and sustained momentum in its service platform. Despite some expected seasonality in Q3, the management remains optimistic about achieving the revised revenue targets. These factors collectively contribute to Jennings’s positive outlook and Buy rating for the stock.