Rizwan Siddiqui
3 min read
In This Article:
TransMedics Group Inc. (NASDAQ:TMDX) is one of the 10 best growth stocks to buy according to billionaires. The stock has had a tremendous year so far, with share price gains of 129%, leading other stocks in this list by a considerable margin, as none of the other stocks here have even reached 100%.
In 2024, the company’s revenue surged a robust 83%, and the street expects it to post a solid 31% growth in FY 2025. The company is also likely to experience significantly improved profitability, as consensus EPS forecasts a 77% growth this year and a 38% growth next year.
A doctor performing a living donor kidney transplant in a hospital operating room, emphasizing the importance of medical advancements.
On June 9, Canaccord Genuity analyst William Plovanic reaffirmed a Buy rating on TransMedics Group Inc. (NASDAQ:TMDX) with an unchanged price target of $129. This reaffirmation follows the company’s June 9 presentation at the Goldman Sachs Global Healthcare Conference, where the company reaffirmed the strategy behind its industry-leading position in organ transplantation. Its execution continues to support a positive outlook, with management sharing tangible progress toward its long-term targets.
At the centre of the story is the National OCS Program (NOP), which now drives nearly all company revenue, enabling TransMedics to offer a full-service, end-to-end transplant logistics and technology solution. This model has not only boosted transplant volumes but also established a critical advantage that competitors have yet to replicate.
The company is targeting $1.2 billion in revenue and a 30% operating margin by 2028, driven by the expanded adoption of its Organ Care System and the upcoming next-generation platforms. Notably, its leadership in the DCD (donation after circulatory death) heart category, which now makes up about half of all U.S. heart donors, reflects its role in expanding the donor pool.
TransMedics Group Inc. (NASDAQ:TMDX) is well-positioned to introduce new platforms for heart, lung, and kidney care in the coming years, including a Gen 3 system designed for greater portability and scalability. With strong clinical data and operational depth, the company appears well-positioned to hit its 10,000 annual transplants milestone by 2028 and continue growing from there. Management expects its kidney platform to launch by 2027 and aims to achieve 20,000 to 30,000 transplants over the next three to five years.
TransMedics Group Inc. (NASDAQ:TMDX) is a commercial-stage medical technology company offering organ transplant therapy for patients with end-stage organ failure across multiple disease states.
