Jefferies downgrades Mesoblast stock to Hold despite price target increase

Published 18/07/2025, 08:12
Jefferies downgrades Mesoblast stock to Hold despite price target increase

Investing.com - Jefferies downgraded Mesoblast Limited (NASDAQ:MESO) (ASX:MSB) from Buy to Hold while raising its price target to AUD2.60 from AUD2.50. Despite the downgrade, InvestingPro data shows MESO has delivered an impressive 73.8% return over the past year, with analyst targets ranging from $24 to $30.

The downgrade follows Mesoblast’s fourth quarter fiscal year 2025 report, which showed unaudited gross revenue of US$13.2 million from Ryoncil sales. The drug launched on March 28 and the reported figures cover through June 30, 2025. According to InvestingPro, the company’s revenue growth forecast stands at 226% for FY2025, though it currently operates with weak gross profit margins.

Jefferies estimates the revenue represents approximately 68 paid infusions, with about six patients likely completing treatment during the period. The firm calculates that approximately 11 patients have either started or completed treatment during this timeframe.

The revenue figure represents Mesoblast’s performance following the commercial launch of Ryoncil, with Jefferies estimating the net revenue at approximately US$10 million.

Mesoblast is scheduled to release its complete fiscal year 2025 financial results on August 27, 2025, which will provide more comprehensive details about the company’s performance. Get deeper insights into MESO’s financials and access 8 additional key ProTips with an InvestingPro subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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