Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 11 Aug, 25 | TMDX | Buy | USD 114.5 | USD 122.0 | USD 130.0 | Same day | Closed |
16.31%
|
*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.
Net Income Surge – Net income in Q2 FY25 was USD 34.9 million, up 186% from USD 12.2 million in Q2 FY24, representing 22% of revenue versus ~11% in the prior year
Revenue Growth – Q2 FY25 revenue reached USD 157.4 million, up 38% from USD 114.3 million in Q2 FY24, driven by increased OCS utilization and NOP service expansion
Increased Stock Compensation Costs – Stock-based compensation grew to USD 9.0 million in Q2 FY25, a 23% increase from USD 7.3 million in Q2 FY24, adding to expense pressures
Higher Operating Expenses – Operating expenses rose to USD 60.0 million in Q2 FY25, up 5.6% from USD 56.8 million in Q2 FY24, reflecting increased R&D and organizational investments
The company faces key investment risks from its high dependence on the successful adoption and expansion of its OCS and NOP platforms, potential regulatory delays such as IDE approvals, and rising operating costs that could pressure margins if revenue growth slows
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 114.5 | 103.0 | 122.0 | 130.0 |
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.
Technical Observation (on the daily chart):
The Relative Strength Index (RSI) over a 14-day period stands at a value of 47.05, currently recovered from oversold zone, with expectations of a consolidation or an upward momentum if the important support of USD 100.00-USD 110.00 holds. Additionally, the stock's current positioning is between both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term resistance and support levels respectively.
TransMedics Group (TMDX) stands out as a prime investment in the medical technology sector, bolstered by its exceptional Q2 2025 earnings that featured a 38% year-over-year revenue growth to USD 157.4 million and a 186% surge in net income to USD 34.9 million, far exceeding forecasts with EPS beating estimates by over 91%. The company's upward revision of full-year 2025 revenue guidance to USD 585-605 million reflects sustained momentum in its Organ Care System (OCS) utilization for lung, heart, and liver transplants, enhanced by its innovative National OCS Program (NOP) and expanding aviation logistics, positioning it for 35% annual growth and leadership in revolutionizing organ transplantation. Trading at an undervalued 6.71x 2025 EV/Sales multiple—well below its five-year average of 10.75x, while CEO Waleed Hassanein's USD 2 million insider stock purchase further affirms confidence in achieving and surpassing the 10,000 U.S. NOP transplants target by 2028.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to TransMedics Group, Inc. (NASDAQ: TMDX) at the closing market price of USD 114.50, as of August 08, 2025.
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 |
-2.4 1.92% | 122.64 | - | 250.00 | 12.48 | 21.98 | 12.98 | -407.2289 |
| ABT Abbott Laboratories |
-0.52 0.41% | 126.34 | 37.15 | 23.15 | 4.67 | 4.97 | 4.88 | 19.38 |
| SYK Stryker Corporation |
1.17 0.33% | 352.86 | 44.07 | 24.94 | 5.51 | 6.12 | 6.05 | 25.73 |
| MDT Medtronic PLC |
0.62 0.63% | 98.34 | 26.60 | 15.87 | 3.35 | 2.08 | 3.90 | 14.12 |
| BSX Boston Scientific Corp |
1.30 1.40% | 94.25 | 68.17 | 24.57 | 5.85 | 4.26 | 6.46 | 26.80 |
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 Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is 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 level is August 08, 2025. The reference data in this report has been partly sourced from REFINITIV.
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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