Mesoblast downgraded to Hold from Buy at Jefferies

Jefferies downgraded Mesoblast (MESO) to Hold from Buy with a price target of A$2.30, up from A$1.10. The firm updated the company’s for the FDA’ss recent approval of Ryoncil in pediatric steroids-refractory acute graft-versus-host disease patients. While the market size is only 375 pediatric patients per year in the U.S., expansion of this indication is possible in adults if the upcoming adult trial is positive, the analyst tells investors in a research note. Jefferies continues to assume full U.S. reimbursement approval at the start of fiscal 2026. However, after Mesoblast’s recent share price appreciation, the firm downgraded the shares on valuation.