Credit Suisse's U.S. analysts start coverage of Mesoblast (MSB.AU, MESO) with a US$10 price target on its Nasdaq-listed shares, near double the US$5.13 last trade. "We see the opportunity for one or two late-stage programs that could have potential blockbuster assets," says Credit Suisse. "We think current shares are trading with little credit to future programs." Mesoblast has three late-stage programs: graft versus host disease, congestive heart failure in partnership with Teva, and chronic lower back pain due to disc degeneration. Credit Suisse thinks the heart and back program can lead to big royalties. "There is no partner in the back program, but we model one paying 25% since it is such a big opportunity." If both programs work, the broker's value estimate is US$24. ([email protected]; @beckthurlow)
MSB Price at posting:
$1.54 Sentiment: Hold Disclosure: Held
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