On Thursday, Piper Sandler initiated coverage on shares of TransMedics Group (NASDAQ:TMDX) with an Overweight rating and a price target of $95.00. The firm highlighted the company's innovative role in the organ transplant sector, noting its proprietary organ preservation technologies and wholly-owned transport services.
TransMedics Group, recognized for its transformative impact on the organ transplant market, is currently tapping into a $3 billion opportunity that encompasses heart, lung, and liver transplants. Piper Sandler suggests that this estimate is conservative and expects the market to grow as transplantation rates increase and the company expands its offerings to include new organs, such as kidneys.
The company has reported robust double-digit revenue growth over recent years, and Piper Sandler anticipates this trend to persist in the coming years. The firm's analysis indicates that TransMedics is trading at an attractive valuation, with a 7x enterprise value to estimated 2024 sales ratio, which is favorable when compared to other high-growth companies in the healthcare sector.
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