On Thursday, TransMedics Group Inc . (NASDAQ:TMDX) received an updated price target from Oppenheimer, with the firm raising its expectations from $125.00 to $200.00 while maintaining an Outperform rating on the stock.
This adjustment follows the company's impressive second-quarter revenue report, which significantly exceeded both the firm's and the consensus estimates.
TransMedics reported second-quarter revenues of $114.3 million, surpassing the anticipated figures of $100.2 million and $98.8 million. During the quarter, approximately 126 transplant programs utilized TransMedics' logistics services, marking an increase from the previous quarter. The company's active daily use of airplanes stood at 11 for the second quarter, and it has doubled its pilot headcount in the same period.
In light of these strong results, TransMedics has raised its full-year 2024 guidance to a range of $425-445 million, which is above the previously estimated $400 million by Oppenheimer and the $401 million consensus.
The firm noted several key takeaways from TransMedics' performance, including the complementary nature of the aviation business to the company's overall organ share gains, the potential of new product iterations, and the faster-than-expected operational expenditure leverage and organ share gains.
Following the second-quarter results and the updated full-year guidance, Oppenheimer has revised its estimates and has increased the price target for TransMedics to reflect the company's strong performance and promising outlook.
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