TransMedics Group has received a 'Buy' rating from TD Cowen with a $120 price target, implying 77% upside from its last close. The firm cited growing US transplant activity in heart, liver and lung procedures as a key driver for the company's Organ Care System technology and logistics business. Monthly US transplant data showed volumes rose approximately 5% year-over-year in the second quarter of 2026. TransMedics generated $173.9 million in total revenue in the first quarter of 2026, up 21% year-over-year, with product revenue reaching $108 million and service revenue contributing $66 million. The company ended the quarter with $461.7 million in cash and cash equivalents. Shares closed up 2% on Wednesday and gained further in after-hours trading.

TransMedics Group director Thomas J. Gunderson sold 9,624 shares of common stock for approximately $722,000 in an options-related transaction, according to an SEC Form 4 filing. The sale was executed immediately after exercising vested stock options, with proceeds used to cover the option exercise price and associated tax obligations. All shares were held and transacted directly by Gunderson, with no involvement from trusts or other indirect entities. Following the transaction, Gunderson's direct common share holdings are valued at approximately $1.26 million. The transaction appears to align with routine portfolio and liquidity management rather than a discretionary reduction in exposure, given its structure as an option exercise and sale to cover costs. TransMedics develops the Organ Care System for preserving and monitoring donor organs.

Rhythm Pharmaceuticals, a healthcare stock that has declined year-to-date, is positioned for a rebound according to investment analysis. The drugmaker's shares have already begun recovering, with continued momentum expected. TransMedics Group, developer of the Organ Care System technology for donor organ transport, has seen shares fall sharply despite strong long-term prospects. The company reported first-quarter 2026 revenue growth of 21% year-over-year, though operating expenses rose faster due to research and development investments. TransMedics is expanding into Europe and developing a kidney transplant system, which could significantly boost growth given kidneys represent 40% more transplants annually than hearts, lungs and livers combined. Both stocks are recommended as May buying opportunities for long-term investors.