TransMedics: Scaling Organ Care and Aviation Logistics Amid Accelerating U.S. Transplant Volumes Supports Buy Rating

TD Cowen analyst Josh Jennings has maintained their bullish stance on TMDX stock, giving a Buy rating today.

Josh Jennings has given his Buy rating due to a combination of factors tied to both procedure growth and company-specific execution. He notes that TransMedics has progressed beyond its initial commercialization phase for the Organ Care System and National OCS Program, meaning revenues are now more closely driven by broader U.S. transplant activity and the scaling of TransMedics Aviation. The latest quarterly data show healthy expansion in liver and lung transplant volumes and continued growth in heart procedures, which together point to a solid demand backdrop for the company’s platform. In particular, the overall transplant volume increase has accelerated compared with the prior quarter, signaling strengthening utilization trends.

Jennings also emphasizes that TransMedics Aviation flight activity is an increasingly important revenue driver as the integrated logistics network supports more organ retrieval and transport. The business is set to benefit from typical fourth-quarter seasonality that historically boosts transplant and flight volumes, providing an additional near-term tailwind. With the company now more tightly linked to a growing and increasingly coordinated transplant ecosystem, he sees a favorable setup for continued top-line growth. These dynamics underpin his conviction that the stock offers attractive upside potential, supporting his Buy recommendation.

Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TMDX in relation to earlier this year.