Mesoblast Ltd (ASX: MSB) shares are climbing higher again on Tuesday morning. At the time of writing, the regenerative medicine company's share price is 1.31% higher and changing hands at $2.32 a piece.
Over the past six months, the stock has climbed an incredible 34.1%. Over the year, the shares have skyrocketed 59.59% higher. The impressive gains have helped offset the 45% share price crash in February and March this year. This was amid a fallout from US President Donald Trump's 100% tariff on pharmaceutical drugs, which smashed ASX shares.
It's an impressive resurgence, but now investors are questioning whether the buying opportunity is still there. Or if they've missed the boat?
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Is Mesoblast well-positioned for more growth?
In late October, the company announced its earnings for the September quarter. It revealed an impressive 69% quarter-on-quarter increase in net revenue from its Ryoncil® product. It also revealed an impressive 60% net revenue surge from the previous quarter.
Mesoblast was also recently given a specific Healthcare Common Procedure Coding System (HCPCS) J-Code for its recently approved Ryoncil stem cell therapy from the United States Centers for Medicare & Medicaid Services (CMS). This was a significant milestone for the company.
Mesoblast has also said that its cell therapy products would not be subject to the 100% tariff on pharmaceuticals announced by US President Donald Trump, as they were manufactured in the US.
Going forward, Mesoblast plans to continue expanding Ryoncil®'s approved use into adult SR-aGvHD patients. It's aiming for a pivotal trial with the support of the National Institutes of Health.
The company says it is well-funded and will consider drawing additional capital from its convertible note facility as it continues to grow sales and broaden its cell therapy pipeline for other inflammatory conditions.
Mesoblast also has REVASCOR®, which is used 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.
Does this mean Mesoblast shares can explode even further?
Investors will be pleased to hear that it's not too late to buy Mesoblast shares. Despite this year's impressive gains, analysts think there is a significant amount of upside potential ahead.
TradingView data shows that out of 7 analysts, 6 have a strong buy rating on the shares. The outlook for its share price is incredibly positive, too. Analysts are forecasting target prices as high as $5.33 per share. This represents a huge 130.55% potential upside at the time of writing.
Broker Bell Potter has a speculative buy recommendation on Mesoblast shares and a price target of $4, which indicates a potential upside of 72.4% at the time of writing.
