TransMedics Group (TMDX) is facing "misplaced" concerns over increasing jet fuel prices' impact on its logistics margins, Oppenheimer said in a Tuesday note.

Based on conversations with industry players, Oppenheimer said TransMedics is passing on incremental fuel surcharges of up to $5,000 per flight to hospitals. The investment firm said "surcharge pass-throughs" is standard in hospital contracts for organ transplant logistics providers.

Even if the company had to shoulder the incremental costs, the estimated total impact in Q1 is about $2.5 million to $5 million based on flight hours, the brokerage added. A $5 million impact will cut Q1 gross margins by 270 basis points and earnings per share by about 15%, Oppenheimer added.

Oppenheimer has an outperform rating on TransMedics Group, with a $175 price target.

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