2024-02-07 10:28:09 ET
Summary
- TransMedics has a dominant market position in the organ transplant market due to its revolutionary Organ Care System product, which helps organs survive longer, enabling significantly greater reach.
- At 15x TTM P/S and 9x NTM P/S, TransMedics stock is expensive but somewhat justified due to its triple-digit revenue growth rate.
- TransMedics' valuation is in line with Swedish peer, Xvivo Perfusion AB, despite growing significantly faster.
- We rate the stock as a HOLD with a target price of $77. While we own shares, we don't plan on adding or trimming until after seeing Q4 2023 results.
Investment Thesis
TransMedics Group, Inc. ( TMDX ) is an underappreciated medical technology stock that's signature invention, the Organ Care System, helps better transport donor organs by keeping them in warm fluid that mimics the human body. The company has seen phenomenal growth, reporting 159% YoY and 27% QoQ revenue growth in its most recent Q3 2023 quarter....
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For further details see:
TransMedics: A Very Expensive Growth Stock