TransMedics upgraded at Needham on strong US sales

[The New York Stock Exchange on the Wall street sign]
Dmitry Vinogradov

* Needham upgraded TransMedics (NASDAQ:TMDX [https://seekingalpha.com/symbol/TMDX]) to buy from hold saying that US sales figures are likely to exceed consensus for Q3. The company reports earnings after market close on Oct. 29.
* The firm set a price target of $148 (~24% upside based on Oct. 22 close).
* Analyst Mike Matson noted that he expects "new heart and lung clinical trials and its international expansion to become increasing growth drivers during 2026," adding that margins are also increasing.
* In a note, Matson wrote that that the company plans to expand in Europe by the end of the year. This could be an important growth driver as the continent accounts for 45% of global transplant volumes. International growth should also accelerate in 2026.
* He added that US FDA approvals earlier this year of the OCS Lung IDE and OCS Heart IDE should also drive growth next year.
* TransMedics shares are up ~6% in Thursday morning trading.

MORE ON TRANSMEDICS GROUP

* TransMedics Group: Guidance Up, Durability In Question [https://seekingalpha.com/article/4831168-transmedics-group-guidance-up-durability-in-question]
* TransMedics: I'm More Bullish Than Ever [https://seekingalpha.com/article/4824792-transmedics-im-more-bullish-than-ever]
* TransMedics: Upcoming Trials Are Critical [https://seekingalpha.com/article/4823419-transmedics-upcoming-trials-are-critical]
* TransMedics initiated with Hold at Stifel on mixed survey results [https://seekingalpha.com/news/4492440-transmedics-stock-initiated-hold-stifel]
* TransMedics rises as FDA greenlights OCS heart trial [https://seekingalpha.com/news/4477708-transmedics-stock-rises-fda-clears-ocs-heart-trial]