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

TransMedics

17/12/2024 12:21

** 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;))