Stock Price & Analysis

Analysis and Insights

Technical Analysis:

Mesoblast (MESO) stock is currently trading at $13.16 as of March 18, 2025. The stock has shown a slight decline of -0.23% during regular market hours. The Relative Strength Index (RSI) values for MESO are 29.30 (RSI 6), 31.32 (RSI 12), and 32.82 (RSI 14), indicating that the stock is not in overbought territory but is approaching oversold levels. The MACD is currently at -1.15, suggesting bearish momentum, but the stock is consolidating near its pivot point of $13.68.

Fundamental Analysis:

Mesoblast has shown promising developments, including its addition to the S&P/ASX 200 Index, which enhances its visibility and investor appeal. The company has also reported a reduction in net operating cash spend and maintains a strong cash position, with $38 million on hand and $200 million pro-forma cash after recent fundraising. Additionally, Mesoblast's FDA approval for Ryoncil and its pipeline progress are positive indicators of growth potential.

Analyst Sentiment:

Analysts have provided strong buy ratings for Mesoblast, highlighting its promising market position and recent FDA approvals as key factors for potential growth. Piper Sandler has raised its price target for MESO from $15 to $24, indicating confidence in the stock's upside potential. However, some analysts have expressed caution due to valuation concerns following the stock's recent appreciation.

Conclusion:

Based on the analysis, Mesoblast (MESO) stock presents a mixed outlook. While the company's fundamentals and analyst sentiment are positive, the technical indicators suggest caution. Investors should consider waiting for further stabilization or a clearer uptrend before making a decision.

The price prediction for MESO stock in 2025 is expected to reach $15 in the short term and potentially $24 in the long term.

Reasons:

1. Fibonacci Levels: The stock is near the Fibonacci pivot at $13.68, with resistance at $14.73 (R1) and $15.38 (R2), suggesting upward potential.
2. Positive News: Addition to the S&P/ASX 200 Index and FDA approvals enhance visibility and growth prospects.
3. Analyst Sentiment: Piper Sandler raised the price target to $24, while Jefferies maintains a conservative target, indicating mixed but overall positive sentiment.

The S1 support level for MESO Stock is $12.63 ,The R1 resistant level for MESO Stock is $14.73.

As of the end of day on 2025-03-18, the price of MESO Stock was $13.16.

The target price for MESO Stock according to analyst rating is 27.00, with the highest price target at 30.00 and the lowest at 24.00. Analysts have a Moderate Buy rating on MESO Stock overall.

The market cap of MESO is $16.7B.

Analysis and Insights

MESO appears overvalued based on current valuation metrics and financial performance. Here's the analysis:

1. Valuation Metrics: MESO has a high P/E ratio of 69, indicating investors are pricing in significant future growth. The EV/EBITDA of 34 and P/S ratio of 8.5 further suggest a premium valuation compared to industry peers.

2. Financial Performance: The company reported a Q2 net operating cash spend of $10.1 million, down 18% from the previous quarter, ending with $38 million in cash and $200 million pro-forma cash post-fundraising. However, the ROE of 3.5% is low, indicating less efficient equity use.

3. Market Sentiment: MESO's stock rose 13% after FDA approval for its graft-versus-host disease therapy, reflecting positive sentiment. Its inclusion in the S&P/ASX 200 index also boosted visibility.

4. Analyst Sentiment: Strong buy ratings and a raised target price of $24 suggest optimism, but high valuation metrics may limit upside potential.

Given these factors, MESO may be overvalued due to high valuation metrics despite positive developments. Investors should consider if growth prospects justify the current price.

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Mesoblast Limited is an Australia-based company, which is engaged in developing allogeneic (off-the-shelf) cellular medicines for the treatment of severe and life-threatening inflammatory conditions. It has leveraged its proprietary mesenchymal lineage cell therapy technology platform to establish a broad portfolio of late-stage product candidates. It is developing product candidates for distinct indications based on its remestemcel-L and rexlemestrocel-L allogeneic stromal cell technology platforms. Remestemcel-L is being developed for inflammatory diseases in children and adults including steroid refractory acute graft versus host disease, and biologic-resistant inflammatory bowel disease. Rexlemestrocel-L is being developed for advanced chronic heart failure (REVASCOR) and chronic low back pain (MPC-06-ID). Two products have been commercialized in Japan and Europe by the Company's licensees. It has established commercial partnerships in Europe and China for certain Phase III assets.

MESO stock is predicted to reach $35 by 2030, driven by FDA approval of Ryoncil and strong analyst sentiment. The stock is expected to benefit from expanding its adult market and pipeline growth.

MESO has a total of 73 employees.