Mesoblast Limited
MSB Details
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Positive Phase 2 results driving the stock: Mesoblast Limited (ASX: MSB) stock continued to surge over 4.5% on August 10, 2016 as investors are contended with the group’s Phase 2 results which showed improvements in biologic refractory rheumatoid arthritis. MSB otherwise fell over 41.6% in last three months (as of August 09, 2016) as Teva withdrew its funding for the group’s operations. On the other hand, we have been confident on the stock recovery given the group’s strong expertise, and accordingly the stock recovered over 7.6% in the last four weeks alone (as of August 09, 2016). Moreover, the group’s target market, biologic refractory rheumatoid arthritis (RA) population comprises over one third of all RA patients who got anti-TNF or other biologic agents. The group’s Intravenous infusions of allogeneic Mesenchymal Precursor Cells (MPCs) were well tolerated in biologic refractory RA patients and did not report any major events over 12 weeks. A single intravenous MPC infusion in biologic refractory RA patients led to dose-related enhancements in clinical symptoms, function, and disease activity.
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Recommendation: We maintain our “Hold “recommendation on the stock at the current price of $1.265
Results highlights (Source: Company Reports)
Medical Developments International Ltd
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MVP Details
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Distribution deal with Cardinal Health: Medical Developments International Ltd (ASX: MVP) stock surged over 7.9% on August 10, 2016 while the company came up with an announcement of issuance of 400,000 fully paid ordinary shares. The group made a distribution deal with Cardinal Health for their range of “Space Chamber” anti-static Respiratory Devices in the United States of America (USA). With this move, the group would further strengthen its respiratory business in the USA. The group also finished its deal with AmerisourceBergen in May 2016. On the other hand, the group’s stock already generated over 51.4% this year to date placing them at unreasonable levels. MVP is trading at a very high P/E and has a low dividend yield.
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Recommendation: We give an “Expensive” recommendation on the stock at the current price of $5.72
Computershare Limited
CPU Details
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Better than estimated performance: Computershare Limited (ASX: CPU) stock surged over 8.8% on August 10, 2016 as the group delivered a better than estimated performance. CPU overall management revenue rose over 5% year on year (yoy) to $2,074.7 million in fiscal year of 2016. Management EBITDA rose over 0.5% yoy to $557.1 million while the Management EBITDA margin is 26.9%. On the other hand, the group’s Management EPS fell over 7.9% to 55.09 cents during the period. Plan Managers EBITDA fell over 20.8% yoy to $58.9 million impacted by declining transaction volumes due to market volatility. CPU stock is trading at higher levels and we believe the stock would be under pressure despite the temporary rise.
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Recommendation: We maintain our “Expensive” recommendation on the stock at the current price of $9.74
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ComputersharePerformance (Source: Company Reports)
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