In a report released yesterday, Patrick Wood from Morgan Stanley maintained a Hold rating on TransMedics Group, with a price target of $123.00.
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Patrick Wood has given his Hold rating due to a combination of factors related to recent regulatory developments in the organ transplant sector. The announcement by HHS and CMS regarding reforms to Organ Procurement Organizations (OPOs) and the Organ Procurement and Transplantation Network (OPTN) introduces potential short-term volatility. However, these changes could positively impact organ volumes in the long term, which is a crucial factor for TransMedics Group’s operations.
While the immediate impact on TransMedics is minimal, the potential for further decertifications of OPOs could create uncertainty in the sector. On the other hand, the new guidelines aimed at increasing public trust and donor registrations might eventually lead to higher organ volumes, benefiting TransMedics in the future. Therefore, the Hold rating reflects a balanced view of the potential risks and opportunities stemming from these regulatory changes.
In another report released on September 12, Stifel Nicolaus also maintained a Hold rating on the stock with a $115.00 price target.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is neutral on the stock.