Oppenheimer Gives a Buy Rating to Mesoblast Ltd

By Ryan Adsit

In a report released today, Mark Breidenbach from Oppenheimer assigned a Buy rating to Mesoblast Ltd (NASDAQ: MESO), with a price target of $16. The company’s shares closed yesterday at $5.92.

Breidenbach observed:

“Wednesday, Mesoblast reported FY3Q18 results and provided a business update. The company could be positioned for its first registrational filing in 3Q, assuming positive 180-day results from the Phase 3 trial of MSC-100-IV in pediatric graft- versus-host disease (GVHD). Nearer term, 100-day survival data from the 60-patient open label trial, expected next month, could bolster the therapy’s chances for FDA approval. While we see the company’s GVHD program as an important validation of its cell therapy platform, we believe the commercial success of Mesoblast hinges on its products for congestive heart failure (CHF) and chronic lower back pain. Management recently addressed a near-term financial overhang with a $75M debt financing, which could potentially extend the company’s cash runway until mid-2019. Reiterate Outperform rating and $16 PT.”

According to TipRanks.com, Breidenbach is a 5-star analyst with an average return of 19.3% and a 49.5% success rate. Breidenbach covers the Healthcare sector, focusing on stocks such as Iovance Biotherapeutics Inc, Global Blood Therapeutics, and Sorrento Therapeutics.

Currently, the analyst consensus on Mesoblast Ltd is Strong Buy and the average price target is $14.60, representing a 146.6% upside.

In a report issued on May 29, Maxim Group also assigned a Buy rating to the stock with a $14 price target.

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Based on Mesoblast Ltd’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $13.72 million. In comparison, last year the company had a GAAP net loss of $9.85 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.