Maxim Group Thinks Mesoblast Ltd’s Stock is Going to Recover


In a report released today, Jason McCarthy from Maxim Group maintained a Buy rating on Mesoblast Ltd (MESO), with a price target of $16. The company’s shares closed yesterday at $5.10, close to its 52-week low of $4.74.

McCarthy noted:

“Mesoblast reported F1Q19 (FYE June) revenue of $11.6M consisting of $10M upfront from Chinese partner Tasly Pharmaceutical (SHA: 600535 – in TEMCELL royalties from JCR Pharmaceuticals (4552 – NR). Net loss was ($19.5M) and Mesoblast ended the period with $55M in cash on the balance sheet. However, with $40M received in Tasly partnership, the company has $95.1M on a pro forma basis, a year+ of runway, excluding $50M remaining under existing financing agreements.”

According to TipRanks.com, McCarthy has currently no stars on a ranking scale of 0-5 stars, with an average return of -2.7% and a 32.3% success rate. McCarthy covers the Healthcare sector, focusing on stocks such as SELLAS Life Sciences Group Inc, ContraVir Pharmaceuticals Inc, and Sonoma Pharmaceuticals Inc.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Mesoblast Ltd with a $17.75 average price target, representing a 248.0% upside. In a report issued on November 11, Cantor Fitzgerald also maintained a Buy rating on the stock with a $23 price target.

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Based on Mesoblast Ltd’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $20.66 million. In comparison, last year the company had a GAAP net loss of $7.05 million.

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Mesoblast Ltd. is a biopharmaceutical company, which engages in the research, development, and market of mesenchymal lineage adult stem cell technology platform. Its medicines target the cardiovascular diseases, spine orthopedic disorders, oncology and hematology, immune-mediated, and inflammatory diseases.

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