TransMedics Group (TMDX – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Josh Jennings from TD Cowen reiterated a Buy rating on the stock and has a $120.00 price target.
Josh Jennings has given his Buy rating due to a combination of factors that highlight TransMedics Group’s significant impact on the liver transplantation field. The company’s Organ Care System (OCS) and comprehensive logistics services have notably increased the volume of liver transplants in the U.S., with one key opinion leader’s center doubling its transplant cases in just two years. This increase is largely attributed to the widespread adoption of OCS, which now accounts for 70% of liver transplants, and the enhanced utilization of donation after circulatory death (DCD) livers, leading to improved transplant outcomes.
TransMedics’ innovations have not only expanded the use of DCD livers but also improved clinical outcomes and patient experiences, marking a structural transformation in liver transplantation practices. Despite the challenge of costs, hospitals with strong administrative support and favorable reimbursement policies are able to maintain high utilization rates of the OCS platform. The national expansion of DCD liver transplantation, driven by TransMedics, is easing the pressure on the liver transplant waitlist, with projections indicating continued growth in the coming years.
In another report released on April 14, Canaccord Genuity also reiterated a Buy rating on the stock with a $104.00 price target.