Stock Pick

2 ASX shares tipped to storm higher this year

Written by

openjargon

in

A view from the track behind a runner in the starting block.

While the broader S&P/ASX 200 Index (ASX: XJO) slowly grinds higher – 2.8% this year – the real action sits beneath the surface.

2 ASX 200 shares look primed to leave the benchmark behind in 2026: NextDC Ltd (ASX: NXT) and Mesoblast Ltd (ASX: MSB).

Let’s go and see what brokers like about these ASX growth shares.

NextDC

The $9 billion ASX share rides one of the market’s most powerful structural waves. Businesses are shifting to cloud platforms, rolling out artificial intelligence (AI) workloads, and demanding secure, scalable infrastructure.

As it happens, NextDC is a top data centre-as-a-service provider in the Asia-Pacific, powering critical infrastructure for global cloud platforms, enterprises, and governments.

Demand for its capacity is surging, driven by the cloud shift and the AI boom. That combination fuels long-term earnings growth. Recent share price dips have reset expectations. This has created what many analysts view as a clear valuation gap compared with NextDC’s growth pipeline.

At the start of the week, the company received development approval for its M4 Melbourne data centre project. This supports its expansion pipeline and reflects continued demand for high-quality data centre capacity in major metropolitan markets.

The ASX share continues to invest heavily in new facilities, with capital expenditure directed toward expanding its national footprint and supporting customer growth. NextDC’s outperformance relative to the broader tech sector suggests investors view it more as infrastructure than as a high-growth software stock.

Broker coverage still leans constructive, with several price targets sitting very comfortably above current levels. Some analysts have set the maximum 12-month price target at a whopping $29.36. This points to a 111% upside at the time of writing.

The team at Morgans is less bullish but does see potential for the ASX share to rise strongly from current levels. The broker has a buy rating with a $19 price target. Based on its current share price, this implies a potential gain of 36%.

Mesoblast

This ASX share tells a different story. Mesoblast is a real higher-risk, potentially higher-reward play.

Confidence is rebuilding around its lead therapy, remestemcel-L. In January, the FDA acknowledged positive results for the treatment in patients with chronic lower back pain linked to degenerative disc disease.

Crucially, the agency noted that reductions in opioid use could potentially appear on the product label. In a post-opioid-crisis world, that’s a major endorsement. The healthcare company reports that many patients cut back or even stopped opioids for extended periods.

Sales momentum is also building. The latest quarterly update showed US$30 million in net revenue, driven by growing uptake of Ryoncil in the US. Gross sales hit US$35 million, as more treatment centres came online and real-world outcomes aligned with clinical trials.

However, risks remain. Mesoblast has burned through capital over years of trials, and the cell-therapy market is crowded. FDA setbacks have tested patience, and even with approvals, execution is key.

Still, brokers are bullish. The average 12-month price target for the ASX share is $4.16, suggesting around 73% upside. TradingView shows all covering analysts rate Mesoblast a strong buy, with targets ranging from $3.33 to $5.05.

Bell Potter sees the stock well-positioned, supported by fresh debt funding and rising Ryoncil demand. It’s assigning a $4.45 target, roughly an 84% potential upside.

Foolish Takeaway

These ASX shares won’t behave like the index. NextDC and Mesoblast carry more volatility and more uncertainty.

But they also offer something the broader market can’t: focused exposure to structural growth themes with real catalysts ahead. The ASX 200 may edge forward. NextDC and Mesoblast aim to sprint.

The post 2 ASX shares tipped to storm higher this year appeared first on The Motley Fool Australia.

Should you invest $1,000 in NEXTDC Limited right now?

Before you buy NEXTDC Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and NEXTDC Limited wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys…

See the 5 Stocks

* Returns as of 1 Jan 2026

.custom-cta-button p {
margin-bottom: 0 !important;
}

More reading

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More posts