Cantor Fitzgerald Reaffirms Their Buy Rating on Mesoblast Ltd

By Jason Carr

In a report released yesterday, Elemer Piros from Cantor Fitzgerald reiterated a Buy rating on Mesoblast Ltd (NASDAQ: MESO). The company’s shares closed yesterday at $6.39.

Piros observed:

“Accelerating Chronic Heart Failure (CHF). Mesoblast recently outlined its plans to seek a potential accelerated approval pathway for its MPC-150-IM product in patients with advanced cardiac heart failure. Based on the significant unmet need and serious complications of the disease, the company believes its 159-patient Phase 2b study with end-stage (Class IV) CHF patients that require left ventricular device (LVAD) assistance could support an accelerated approval. Completion of enrollment is imminent, and top-line data from the study are expected in 1Q18. The primary endpoint of the study will assess the number of times patients are able to undergo weaning off LVAD assistance. Enrolling in Advanced CHF. Mesoblast is also conducting a large 600-patient Phase 3 study in advanced (Class II/III) CHF patients that could serve as a confirmatory study and has enrolled over 400 patients so far. This study will assess recurrent, non-fatal, HF-related major adverse cardiac events between MPC-treated and sham-treated patients. Data are expected to be released in 2019. Attractive Markets. We estimate a large, multi-billion-dollar market for Mesoblast’s cell portfolio (combined royalties of ~$6 billion) when it reaches peak market penetration.”

According to TipRanks.com, Piros is a 1-star analyst with an average return of -1.9% and a 43.5% success rate. Piros covers the Healthcare sector, focusing on stocks such as Dimension Therapeutics Inc, Global Blood Therapeutics, and Bellicum Pharmaceuticals.

Currently, the analyst consensus on Mesoblast Ltd is Moderate Buy and the average price target is $12.50, representing a 95.6% upside.

In a report issued on August 16, Maxim Group also reiterated a Buy rating on the stock with a $14 price target.

Based on Mesoblast Ltd’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $825.7K and GAAP net loss of $9.85 million. In comparison, last year the company earned revenue of $26.84 million and had a net profit of $48.22 million.

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Mesoblast Ltd. engages in the research, development, and market of pharmaceutical products. Its medicines target the cardiovascular conditions, spine orthopedic disorders, oncology and hematology, immune-mediated, and inflammatory diseases. The company was founded by Itescu Silviu on June 8, 2004 and is headquartered in Melbourne, Australia.