The S&P/ASX 200 Index (ASX: XJO) has gained around 2% so far in 2026, but not every share has joined the rally. ASX shares Catalyst Metals Ltd (ASX: CYL) and Mesoblast Ltd (ASX: MSB) have both endured difficult years, with their shares down 13% and 23% respectively at the time of writing.
However, analysts appear to believe the market is overlooking their long-term potential. In fact, broker price targets suggest both ASX shares could double — or more — over the next 12 months.
Let's see why.
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Catalyst Metals: exciting WA gold producer
Catalyst Metals has emerged as one of the ASX's more exciting gold producers.
The ASX gold share operates the Plutonic Gold Belt in Western Australia and has been steadily growing production while expanding its resource base. With gold prices trading near record highs, Catalyst is well positioned to benefit from strong margins and cash generation.
Analysts are particularly optimistic about the company's ability to unlock further value through exploration success and operational improvements. As a relatively small producer, even modest production gains can have a significant impact on earnings.
The key risk for this ASX share is that gold miners remain exposed to operational challenges and fluctuations in commodity prices. While gold has been strong recently, a weaker gold price could reduce profitability and dampen investor enthusiasm.
Despite these risks, the analyst community is overwhelmingly bullish. All five experts covering Catalyst Metals currently rate it as a strong buy.
According to TradingView consensus estimates, the average price target sits at $13.55 per share, implying potential upside of approximately 113% from current levels. The most bullish target is $15.13, which suggests a possible gain of 138%.
Mesoblast: major commercial milestone
Mesoblast offers investors a very different opportunity.
The biotechnology company recently achieved a major milestone with the commercial launch of Ryoncil, giving it its first meaningful opportunity to generate significant product revenue.
Investors are increasingly focused on the possibility that growing Ryoncil sales could eventually support sustainable earnings and cash flow. That would be a major achievement for a biotech company, many of which remain dependent on external funding for years.
Beyond Ryoncil, Mesoblast has additional growth opportunities through its pipeline targeting areas such as heart failure and chronic lower back pain. Successful regulatory approvals could substantially expand its addressable market and future revenue potential.
The obvious downside is risk. Biotechnology stocks can be volatile, and clinical, regulatory, or commercial setbacks can have a significant impact on valuations.
Even so, analysts remain extremely positive on the ASX share. TradingView data shows that all six brokers covering Mesoblast currently have strong buy recommendations on the stock.
The average broker price target stands at $4.06 per share, representing upside of approximately 97% from current levels. The highest target is $4.91, which implies potential upside of around 138%.
Foolish takeaway
While neither ASX share is without risk, analysts clearly believe both Catalyst Metals and Mesoblast have the potential to deliver outsized returns if their growth plans play out as expected.
