Needham analyst Michael Matson has maintained their neutral stance on TMDX stock, giving a Hold rating today.
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Michael Matson has given his Hold rating due to a combination of factors related to TransMedics Group’s recent financial performance and strategic developments. The company reported a strong first quarter in 2025, surpassing consensus expectations for both revenue and earnings per share. This positive performance was partly driven by the success of their OCS Liver product, which contributed to a significant revenue beat.
However, despite the impressive results, there are some concerns that may have influenced the Hold rating. Revenue growth showed a slight deceleration compared to the previous quarter, and the company’s gross margin experienced a decline due to a higher proportion of service revenue. On the positive side, operating margins improved significantly, and the company is taking steps to expand its manufacturing capabilities in Europe. These mixed signals likely led Matson to adopt a cautious stance with a Hold recommendation, balancing the company’s growth prospects against potential risks.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $80.00 price target.