Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 10 Mar, 26 | TMDX | Buy | USD 134.77 | USD 142.0 | USD 150.0 | 8 days | Closed |
10.96%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
TransMedics Group, Inc., a commercial-stage medical technology company, engages in transforming organ transplant therapy for end-stage organ failure patients in the United States and internationally. The company offers Organ Care System (OCS), a portable organ perfusion, optimization, and monitoring system that utilizes its proprietary and customized technology to replicate near-physiologic conditions for donor organs outside of the human body. Its OCS includes OCS LUNG for the preservation of standard criteria donor lungs for double-lung transplantation; OCS Heart, a technology for preservation of DBD donor hearts deemed unsuitable due to limitations of cold storage and for ex vivo reanimation, functional monitoring, and beating-heart preservation of donation-after-circulatory-death hearts; and OCS Liver for the preservation of DBD and DCD of donor livers. The company also developed national OCS program, a turnkey solution for outsourced organ retrieval; and provides OCS organ management and logistics services, including aviation and ground transportation, and other coordination activity. The company was founded in 1998 and is headquartered in Andover, Massachusetts.
Strong Cash Position Enhancement: Cash and cash equivalents increased to USD 488.4 million in FY25 compared to USD 336.7 million in FY24
Strong Revenue Growth Momentum: FY25 total revenue increased to USD 605.5 million compared to USD 441.5 million in FY24
Lung Segment Revenue Decline: FY25 lung revenue declined to USD 14.9 million compared to USD 17.7 million in FY24
Elevated Operating Expense Base: Total operating expenses increased to USD 254.2 million in FY25 compared to USD 224.6 million in FY24
The company’s growth trajectory remains highly dependent on sustained adoption of its Organ Care System and successful scaling of its logistics infrastructure, while being exposed to regulatory, reimbursement, and operational execution risks in a capital-intensive healthcare environment
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 134.77 | 120.0 | 142.0 | 150.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Revenue Expansion Driven by OCS Adoption: During FY25, TransMedics demonstrated strong financial momentum, with total revenue increasing to USD 605.5 million in FY25 compared to USD 441.5 million in FY24, reflecting a robust 37.1% year-on-year growth. This expansion was primarily driven by increased utilization of the Organ Care System (OCS), particularly across liver and heart segments, supported by the scaling of the National OCS Program (NOP) and enhanced logistics capabilities.
Product and Service Revenue Scaling: The company’s product revenue reached USD 372.4 million in FY25 versus USD 273.9 million in FY24, registering a 36.0% increase, while service revenue grew to USD 233.1 million from USD 167.7 million, reflecting a 39.0% rise. This dual-engine growth highlights the company’s integrated model combining device sales with logistics and clinical services, reinforcing recurring revenue visibility.
Operational Leverage and Margin Expansion: Gross profit increased to USD 362.8 million in FY25 from USD 262.1 million in FY24, supported by scale efficiencies and improved logistics utilization. Gross margins improved modestly to 59.9% in FY25 compared to 59.4% in FY24, indicating operating leverage despite higher clinical service costs.
Significant Improvement in Operating Profitability: Operating income rose substantially to USD 108.6 million in FY25 from USD 37.5 million in FY24, translating into an operating margin expansion to 17.9% from 8.5%. This reflects improved cost absorption and stronger revenue mix, even as the company continued to invest in R&D and commercial infrastructure.
Net Income Surge Supported by One-Time Benefits: Net income surged to USD 190.3 million in FY25 compared to USD 35.5 million in FY24. However, this increase was partially supported by a one-time tax benefit related to deferred tax asset valuation allowance release, indicating that underlying profitability improvement, while strong, is somewhat adjusted by non-recurring items.
Operational Scale-Up and Capacity Expansion: Operationally, TransMedics expanded its logistics infrastructure, owning 22 aircraft and covering approximately 79% of NOP flight missions through its internal fleet, significantly enhancing service delivery capabilities. Additionally, U.S. OCS case volumes increased to 5,139 in FY25 from 3,735 in FY24, reflecting a 38% rise and indicating strong clinical adoption.
Strengthened Balance Sheet and Liquidity Position: The company’s liquidity position improved, with cash and cash equivalents increasing to USD 488.4 million as of December 31, 2025, compared to USD 336.7 million in FY24, providing flexibility to fund expansion initiatives, clinical programs, and international growth strategies.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to TransMedics Group, Inc. (NASDAQ: TMDX) at the closing market price of USD 134.77, as on Mar 09, 2026
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Medical Devices
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| TMDX TransMedics Group Inc |
5.57 7.61% | 78.79 | - | 250.00 | 12.48 | 21.98 | 12.98 | -407.2289 |
| ABT Abbott Laboratories |
-0.09 0.10% | 88.41 | 25.97 | 17.24 | 3.57 | 3.20 | 3.81 | 16.75 |
| SYK Stryker Corporation |
6.66 2.21% | 307.80 | 44.07 | 24.94 | 5.51 | 6.12 | 6.05 | 25.73 |
| MDT Medtronic PLC |
1.20 1.54% | 79.34 | 26.60 | 15.87 | 3.35 | 2.08 | 3.90 | 14.12 |
| BSX Boston Scientific Corp |
0.34 0.76% | 45.29 | 31.49 | 17.24 | 4.41 | 3.65 | 4.88 | 19.19 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on March 10, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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