The S&P/ASX 200 Index (ASX: XJO) has reached an all-time high after jumping another 11.99% over the past year. Some ASX 200 stocks have far outpaced the index, recording explosive growth over the same period.
Take Mesoblast Ltd (ASX: MSB) for example. The company's share price has surged 140.1% over the past 12 months, and it isn't expected to stop any time soon.
What is Mesoblast?
Put simply, it's a biotechnology company that creates and sells cell-based medicines to treat complex diseases that don't respond to regular treatments.
It's a clinical-stage development company, which means the treatment is tested in human trials. Some of Mesoblast's medicines have already been FDA-approved. For example, in May, the company received approval from the FDA for Ryoncil® (remestemcel-L). It is used for the treatment of steroid-refractory acute graft versus host disease (SR-aGvHD) in pediatric patients ages 2 months and above.
Its other drug candidates include REVASCOR® for advanced chronic heart failure and MPC-06-ID for chronic low back pain due to degenerative disc disease. These cell therapy candidates are towards the latter stages of their clinical trial pipelines.
Mesoblast has locations in Australia, the United States, and Singapore. It is dual-listed on the ASX and the US Nasdaq as Mesoblast Ltd (NASDAQ: MESO).
The ASX 200 company is set to explode
Thanks to its successes, Mesoblast is expected to experience substantial revenue growth in the coming years.
The business itself hasn't disclosed revenue expectations. But, according to TradingView data, analysts forecast a 201% increase in annual revenue to $26.64 million for FY25. For FY26, analysts expect a huge 352% increase to an estimated $120.4 million.
The FY26 predicted figure represents a $111.55 million growth potential from its reported FY24 revenue volume.
Brokers expect a significant upside ahead
Unsurprisingly, broker consensus is for a strong upside for Mesoblast's share price. The same analysts have a strong buy rating on the stock and a 12-month target price of $4.70 per share.
At the time of writing, Mesoblast shares are changing hands at $2.30. This means the target price represents a potential upside of up to 104.35% for investors.
Broker Bell Potter has a speculative buy recommendation on the healthcare stock and a price target of $3.40, which indicates a potential upside of 47.8%.
The broker acknowledged promising first-quarter revenue and optimism around the FDA approval for Ryoncil, which positions it as a critical treatment for children with steroid-refractory acute GVHD.
Elsewhere, research firm Canaccord Genuity initiated coverage on Mesoblast with a buy rating and set a price target of $2.97, citing the company's promising cell therapy platform. The firm predicts a more conservative 29.1% upside over the next 12 months.
