Mesoblast analysts have sharply downgraded their short-term revenue and EPS forecasts. This has undermined the outlook for profitability in 2027, with the implications for investor sentiment now in focus. The share price has risen recently, but the company’s future earnings performance will be closely watched.
Analysts have sharply downgraded their short-term earnings forecasts for Mesoblast Limited. 2027 revenue is forecast at US$195 million and earnings per share at US$0.01, both significantly below the previous outlook. The seven analysts contributing to the consensus still expect revenue to increase by approximately 63% from the previous 12 months, but the outlook for profitability has deteriorated. The share price is currently A$2.46, having edged higher over the past seven days.
Previous forecasts called for 2027 revenue of US$221 million and EPS of US$0.02. Following the revision, the revenue forecast has been cut substantially. Although the view that the company’s growth outlook will remain well above the market average has been maintained, the possibility of a return to losses has been highlighted.
Over the longer term, analysts also have forecasts extending to 2029, pointing to growth potential above the industry-wide rate. However, based on the outlook through the end of 2026, the price target remains largely unchanged at A$3.91, while expectations of a return to losses in the current fiscal year have been cited as a concern for investment decisions.