Canaccord ups TransMedics PT to $46 from $20

Canaccord Genuity raised its price target for TransMedics (NASDAQ:TMDX) to $46 from $20, predicting 2021 would be transformational with two potential product approvals and a roll-out of an enhanced support model. The stock closed at $39.69 on March 2.

“We expect [2021] to prove foundational for TransMedics’ long-term objectives of becoming the standard of care in organ transport,” writes analyst William Plovanic.

“The company has numerous regulatory catalysts, including an advisory committee meeting for its OCS Heart product in a few weeks, along with potentially a second advisory committee meeting for OCS Liver in the coming months,” he added.

Mr. Plovanic said the company will likely have top-line data for its donor after cardiac death heart trial in the third quarter of 2021, “supporting significant expansion of OCS Heart to not just donors after brain death.”

TransMedics also continues to grow its service offering, known as the National OCS program, growing it to four territories after starting the program in 2020 with just one, he added.

“We expect the service offering to grow significantly in 2021 as it expands geographically to more organ procurement organizations and includes more OCS systems as heart and liver are approved through the year, and TransMedics continues to plan to spend to support the program’s growth,” Mr. Plovanic said.