Core Thesis - TransMedics Group, Inc. (TMDX) is viewed as significantly undervalued with a strong growth potential, particularly in the organ transplant sector, and is projected to exceed $200 per share by 2026 from current levels around $115–$120 [4][5]. Company Performance - As of September 15th, TMDX shares were trading at $114.29, with trailing and forward P/E ratios of 57.57 and 51.55 respectively [1]. - The company has demonstrated strong profitability with a 20% net margin in its most recent quarter, indicating potential for further margin expansion [3]. Market Context - TMDX has experienced share volatility, recently dropping from $140 to $105 due to typical Q3 seasonal softness and competitor-related news that do not materially impact its operations [2]. - The acquisition of OrganOx by Terumo for $1.5 billion, reflecting a valuation of over 20x sales, underscores the premium placed on high-growth medical device companies [2]. Growth Projections - TMDX is expected to grow revenues at over 30%, significantly outpacing the typical 10–15% growth of established competitors in the MedTech sector [3]. - The company is scaling its OCS program globally, which is expected to enhance its market position and revenue growth [5]. Management Confidence - The CEO of TransMedics has expressed a highly positive outlook for the company, emphasizing long-term growth and personally investing in the stock to demonstrate confidence [2][3]. - Shareholders are encouraged to focus on long-term growth rather than short-term volatility [3].