Buy, hold, sell: Challenger, APA Group, Mesoblast shares

S&P/ASX 200 Index (ASX: XJO) shares are down 0.3% to 9,052.1 points on Tuesday.

Among the 11 market sectors, energy is in the lead, up 1.7%, while consumer discretionary is the laggard, down 2.5%.

Let’s check out some new ratings on ASX shares today.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is $2.30, down 2.8% today and up 14% over 12 months. 

Bell Potter has a buy rating on this ASX healthcare share following its FY26 results.

Analyst John Hester said: 

(All US$m) Revenues $120.2m and loss at the EBIT line -$49.9m were in line with our forecast. Ryoncil sales of $115m were at the mid-point of the guidance range.

Operating expenses $153m were dominated by R&D expense ($97m), driven by the investment in label expansion for Ryoncil and the ongoing Phase 3 trial for Rexlemestrocel in chronic lower back (CLBP).

Loss at NPAT $57.4m with net cash burn for the year -$43.8m inclusive of just -$13m in 2H26.

MSB has a long pipeline and label expansions for Ryoncil alone which we expect will come to market on a 3 to 5 year time horizon.

Pivotal moments in the short term include the interim readout on adult GvHD and the pending submission of the BLA for Rexlemestrocel in HF.

Challenger Ltd (ASX: CGF)

The Challenger share price is steady at $9.45 today, and up 14% over 12 months. 

Jonathan Tacadena from MPC Markets has a hold rating on this ASX 200 financial share. 

Tacadena said (courtesy The Bull): 

Australia’s largest annuities provider delivered a strong result in full year 2026. Statutory net profit after tax of $506 million was up 163 per cent. Annuity sales of $6.2 billion were up 19 per cent. It delivered a normalised return on equity of 11.6 per cent.

The full year ordinary dividend of 31.5 cents, fully franked, was up 7 per cent. The share buy-back was upsized to $450 million.

The shares have performed strongly since March. Hold for the buy-back and yield, and perhaps consider adding on any weakness.

APA Group Ltd (ASX: APA)

The APA share price is $10.82, down 0.6% today and up 22% over 12 months. 

Morgans has a sell rating on this ASX 200 utilities share. 

Analyst Damien Nguyen said: 

This energy infrastructure business provides investors with stable, regulated cash flows and a defensive earnings profile.

Total revenue was down 6.3 per cent in full year 2026, but profit after tax was up 81.4 per cent.

Balance sheet leverage is significant, in our view, and funding costs can be a challenging headwind.

The market is concerned about the shift away from gas may create uncertainty about future demand in the longer term.

Although APA is pursuing energy transition opportunities, we believe these are unlikely to materially improve earnings in the near term.

We believe investors can find better risk-adjusted opportunities elsewhere.

The post Buy, hold, sell: Challenger, APA Group, Mesoblast shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 positions in and has recommended Apa Group. The Motley Fool Australia has recommended Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.