Mesoblast (NASDAQ:MESO) Shares Gap Up – Should You Buy?

Mesoblast Limited (NASDAQ:MESO) gapped up before the market opened on Thursday. The stock had previously closed at $13.39, but opened at $15.50. Mesoblast shares last traded at $15.4610, with a volume of 191,318 shares.

More Mesoblast News

Here are the key news stories impacting Mesoblast this week:

• Positive Sentiment: Ryoncil revenue increased 44%. Mesoblast’s first-quarter fiscal 2027 update showed a 44% rise in net revenue, led by continued growth in Ryoncil sales. The result is strengthening the investment case that the company’s first approved therapy can become a meaningful commercial product. Mesoblast fiscal first-quarter activity report
• Positive Sentiment: Cash spending reportedly fell sharply. Coverage of the quarterly update highlighted a substantial reduction in cash burn, which could extend Mesoblast’s financial runway and reduce near-term financing risk. Mesoblast Ryoncil sales and cash burn update
• Positive Sentiment: Investors are reassessing Ryoncil’s growth potential. Analysts and market commentators suggested that accelerating Ryoncil sales could materially change the outlook for Mesoblast, helping explain the stock’s strong rally and increased trading attention. Ryoncil growth could change the case for Mesoblast stock
• Neutral Sentiment: Mesoblast was included in broader reports on Australian healthcare and founder-led companies, including screens identifying shares trading below estimated fair value. These lists may increase visibility but do not represent new company-specific fundamentals. Australian founder-led stocks trading below fair value
• Negative Sentiment: The recent rally raises the risk of profit-taking, while Mesoblast remains dependent on continued Ryoncil adoption and execution. Investors should also monitor whether revenue growth can translate into sustained profitability.

Analyst Ratings Changes

Several equities research analysts have commented on MESO shares. Piper Sandler reiterated an “overweight” rating and set a $39.00 price objective (up from $35.00) on shares of Mesoblast in a research note on Thursday, August 27th. Weiss Ratings raised shares of Mesoblast from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, October 9th. Finally, Cantor Fitzgerald restated an “overweight” rating on shares of Mesoblast in a research report on Thursday, September 24th. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $39.00.

Mesoblast Trading Down 3.3%

The stock’s 50-day simple moving average is $14.93 and its 200 day simple moving average is $15.43. The company has a debt-to-equity ratio of 0.19, a current ratio of 2.43 and a quick ratio of 2.09.

Mesoblast (NASDAQ:MESO) last announced its quarterly earnings data on Friday, July 31st. The company reported ($0.07) earnings per share for the quarter. The firm had revenue of $34.45 million for the quarter. On average, research analysts forecast that Mesoblast Limited will post -0.05 earnings per share for the current year.

Institutional Investors Weigh In On Mesoblast

Several institutional investors have recently modified their holdings of MESO. Bank of America Corp DE increased its position in Mesoblast by 608.4% during the 1st quarter. Bank of America Corp DE now owns 100,004 shares of the company’s stock worth $1,538,000 after purchasing an additional 85,888 shares in the last quarter. Royal Bank of Canada lifted its position in Mesoblast by 22.5% during the first quarter. Royal Bank of Canada now owns 26,266 shares of the company’s stock valued at $404,000 after buying an additional 4,827 shares in the last quarter. China Universal Asset Management Co. Ltd. grew its stake in Mesoblast by 15.0% during the third quarter. China Universal Asset Management Co. Ltd. now owns 9,566 shares of the company’s stock worth $142,000 after buying an additional 1,247 shares during the period. GAMMA Investing LLC grew its stake in Mesoblast by 14.1% during the second quarter. GAMMA Investing LLC now owns 7,413 shares of the company’s stock worth $100,000 after buying an additional 916 shares during the period. Finally, Mirae Asset Global Investments Co. Ltd. purchased a new stake in Mesoblast during the third quarter worth approximately $39,000. Hedge funds and other institutional investors own 1.43% of the company’s stock.

Mesoblast Company Profile

Mesoblast Limited is an Australia-based biotechnology company focused on developing and commercializing regenerative medicines made from specialized allogeneic mesenchymal lineage cells. The company’s platform is designed to produce “off-the-shelf” cellular therapies intended to address inflammation, tissue damage and impaired healing without requiring cells to be collected from each individual patient.

Mesoblast’s lead product, remestemcel-L, is marketed in the United States as RYONCIL.