BUZZ-TransMedics Group down after J.P.Morgan downgrades stock to 'neutral'

Reuters
2024-12-17
BUZZ-TransMedics Group down after J.P.Morgan downgrades stock to 'neutral'

** Shares of medtech company TransMedics Group TMDX.O down ~2% at $63 premarket

** Brokerage J.P.Morgan downgrades stock to "neutral" from "overweight", cuts PT to $75 from $116

** Says smaller mid-cap growth stories need to demonstrate meaningful near-term upside to outperform truly, hence the rating

** Says near-term outlook less certain as questions remain on the softness seen in Q3 and present Q4 so far, a setup further complicated by a back-end-loaded 2025 sales growth guide that looks more achievable than beatable

** Says co's 20%-to-25% sales growth forecast for 2025, which co announced on its investor day on Dec. 10, already reflects improving trends for both the market and TMDX, with less obvious upside left on the table

** Seven of 10 brokerages rate the stock "buy" or higher, and three "hold"; with a median PT of $112 - LSEG data

** Up to Monday's close, stock had fallen ~18% YTD

(Reporting by Neil J Kanatt in Bengaluru)

((Neil.JKanatt@thomsonreuters.com;))

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