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Thoughts on A2Milk & Mesoblast

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Thoughts on A2Milk & Mesoblast

I have been invested and stuck in A2Milk since 2020 with the average price around $12.59 and Mesoblast with avg price around $2.10. Are these 2 stocks worth holding to recover losses or booking a loss and moving to something else will take me into green faster. Thanks

Answer

Hi Afzal,

We do not provide personal advice hence we won’t discuss your positions, we can only discuss how we see both stocks today:

Mesoblast MSB) $1.065 – we don’t  intend to invest in the Biotech industry because the stocks tend to have very binary outcomes and backing a winner can at times feel like looking for a needle in a haystack.

  • We have no interest in MSB after its bounced around four-fold.

a2 Milk (A2M) $6.27 – After a shocking few years A2M has come back to life over the last 6-months. We like this recovery play helped by a 40% rise in profits on FY23 levels by FY26e driven by strong infant formula sales growth across both English and China-labels, and some daigou channel recovery. We believe investors remain too cautious with its valuation suggesting no significant recovery is priced in.

  • We like A2M even after its strong advance.
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Mesoblast Ltd (MSB)
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