TransMedics sees slower growth but strong market position and attractive valuation at 4x EV/Sales

TransMedics' revenue growth has slowed from 40-50% to 20-25%, with margin pressure and increased investments. However, its logistics and clinical services now make up nearly 40% of revenue, strengthening its competitive edge and supporting long-term margins. Despite normalized growth and compressed margins, the current valuation at 4x EV/Sales is seen as attractive, justifying a buy rating. Execution risks remain as the company pursues multiple growth initiatives and further penetrates the U.S. market, but the potential upside supports the risk.