Canaccord Genuity initiates Mesoblast stock with Buy rating on cell therapy potential

Investing.com - Canaccord Genuity initiated coverage on Mesoblast Limited (NASDAQ:MESO) (ASX:MSB) with a Buy rating and set a price target of AUD2.97, citing the company’s promising cell therapy platform. The company, currently valued at $1.99 billion, trades at $15.43 and according to InvestingPro analysis appears overvalued at current levels.

The research firm highlighted Mesoblast’s specialization in allogeneic "off-the-shelf" therapies that target severe inflammatory diseases. These therapies use cells from a single donor rather than requiring matched donors or cells from the recipient.

Canaccord noted the company’s core Mesenchymal Stromal Cell and Progenitor Cell approach features a mechanism that modulates the immune system to reduce harmful inflammation. The firm described the asset class, including Ryoncil and the broader MSB pipeline, as a "safe, effective platform with broad clinical utility."

The investment bank pointed to an attractive risk-reward profile ahead of key data readouts across multiple indications. Its analysis suggests the potential for significant upside.

Canaccord’s fully de-risked analysis indicates potential upside to $5.64 if Mesoblast achieves success across all its programs, representing substantial growth potential from current levels.

In other recent news, Mesoblast Ltd reported its first quarter of sales for its newly approved drug, Ryoncil, generating $13.2 million in gross revenue. The drug, which received FDA approval for treating steroid-refractory acute graft-versus-host disease in children, marks a significant milestone for the company. Following the earnings announcement, Jefferies downgraded Mesoblast from Buy to Hold, despite increasing the price target to AUD2.60 from AUD2.50. The downgrade came after the release of Mesoblast’s fourth quarter fiscal year 2025 report, which included the unaudited revenue figures from Ryoncil sales. These developments reflect the recent progress and challenges faced by Mesoblast in the market.

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