Mesoblast Ltd (ASX: MSB) shares have been sluggish in 2026, falling around 12% so far. However, the ASX biotech stock is showing signs of life, with shares up around 1% to $2.40 in early Friday afternoon trading. This is taking their monthly gain to 15% and their 12-month return to 25%.

Could another leg higher be coming?

Ryoncil is turning Mesoblast commercial

Mesoblast develops and commercialises allogeneic cellular medicines for complex diseases. The big change for the ASX biotech stock is that it is no longer simply a clinical-stage biotech, with its Ryoncil product now approved in the US and generating meaningful revenue.

Ryoncil treats children with steroid-refractory acute graft-versus-host disease, a serious complication that can occur after a stem cell transplant. The product generated US$115 million in net revenue during FY2026, its first full year following launch, with fourth-quarter revenue reaching US$36 million, up 20% from the previous quarter.

Mesoblast is now working to expand Ryoncil into adults with the same condition, potentially opening up a market around three times larger than the paediatric opportunity. The company has commenced its registration trial and is planning a broad US clinical program.

There are further opportunities in the pipeline. Mesoblast is developing Ryoncil for Duchenne muscular dystrophy, with the US Food and Drug Administration having cleared the company to proceed with a registrational trial.

More catalysts in the making

The company also has potentially significant catalysts beyond Ryoncil. Its rexlemestrocel-L therapy is being developed for chronic lower back pain. The opportunity is what makes this trial particularly interesting for the ASX biotech stock.

The company estimates that chronic lower back pain associated with inflammation and degenerative disc disease affects more than 7 million people in the US. Even single-digit market penetration could potentially generate peak annual revenue of more than US$10 billion, according to Mesoblast.

However, investors will have to wait. Top-line results are expected around the middle of 2027, after the final patient completes 12 months of follow-up.

Brokers see plenty more upside

That pipeline is helping fuel optimism among brokers.

TradingView data shows all six analysts covering the ASX biotech stock rate it a strong buy. Their average price target of $4.27 implies potential upside of approximately 78% from $2.40. The most bullish forecast is $5.46, representing around 128% upside, while the most pessimistic is $2.90.

Bell Potter is particularly bullish. The broker retained its buy rating and $4.45 price target following Mesoblast’s latest results. It expects continued double-digit growth from Ryoncil, alongside major potential catalysts from rexlemestrocel-L in heart failure and chronic lower back pain.

At $4.45, Bell Potter’s price target implies approximately 85% upside from the current $2.40 share price.

For investors comfortable with biotech risk, Mesoblast offers an increasingly interesting proposition: a commercial product generating meaningful revenue, an expanding pipeline and significant potential upside if its key clinical programs continue to progress.

The post Why brokers see 85% upside for this ASX biotech stock appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in Mesoblast. 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.

WiseTech Global Ltd (ASX: WTC) shares have climbed into the green in Friday lunchtime trade.

At the time of writing, the ASX tech shares are up around 1%, and are changing hands for $37.02 a piece.

Today’s increase is good news for investors, but it barely makes a dent in the huge amount of losses shed so far this year.

The shares are now down 46% year to date and around 61% lower than a year ago.

What happened to WiseTech shares?

WiseTech shares were smashed by a tech sector-wide sell-off and an investor rotation to more stable assets amid global volatility earlier this year. 

The company’s shares have also come under pressure this year following a series of updates and media reports surrounding investigations into founder Richard White by the Australian Federal Police and recent news that the Australian Competition and Consumer Commission (ACCC) executed a search warrant on the company 

ASIC and the AFP also searched WiseTech Global’s headquarters in late October 2025.

More recently, investors rotated away from the stock after it posted its FY26 results late last month.

WiseTech reported that it has raised its annual earnings and flagged growth for FY27 in line with analysts’ expectations.

The company reported a 46% increase in EBITDA to US$558.4 million for the 12 months through to the 30th of June. The result was in line with the company’s $550 million to $585 million guidance range but short of market forecasts of $569.5 million.

Investors weren’t impressed and quickly sold up their shares. WiseTech shares have now tumbled over 18% since it posted its results.

Why I’d buy WiseTech shares in the dip

It’s been headwind after headwind for the tech company this year, and investor confidence has dwindled.

But WiseTech has a strong competitive advantage in the global logistics industry and strong growth prospects. 

The company’s CargoWise platform is deeply embedded in the global logistics industry. It is difficult to replace, and this gives WiseTech a strong competitive advantage in the global logistics industry.

If global trade volumes keep expanding and supply chains become more digital, WiseTech could become a dominant software provider in the logistics industry.

CEO Zubin Appoo has also previously commented that AI is actually strengthening the company’s advantage in the market. Rather than replacing the need for WiseTech’s subscription-based software, he said the company’s AI capabilities work to unlock efficiency gains and add value to customers. This is another strong tailwind for the business.

Let’s also remember that the company’s FY26 results came in line with its guidance figures, and a 46% increase in EBITDA shows that the business is performing well.

After the latest share price sell-off, the shares look significantly undervalued to me.

And it looks like brokers are also confident that WiseTech could still be a turnaround story.

What do brokers tip for the ASX tech stock next?

Market Index shows that all brokers are very bullish on the ASX tech stock and hold a strong buy rating. The average $61.19 target price implies a potential 66% upside over the next 12 months, at the time of writing. 

Most interestingly, this is a significant increase from just a week ago. Immediately following WiseTech’s results announcement, brokers were more divided, and the average target price was much lower at $54.71.

TradingView data also shows that brokers are much more positive following the company’s results announcement. Of 17 analysts, 13 have a buy/strong buy rating.

The average target price is largely unchanged, at $57.19. This implies a potential 56% upside over the next 12 months, at the time of writing.

If forecasts come to fruition, it looks like now is a great time to buy the shares in the dip while they’re still trading for cheap.

The post Down another 18%: Why I’d buy WiseTech shares in the dip appeared first on The Motley Fool Australia.

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

NEXTDC Ltd (ASX: NXT) has become one of the clearest ways for Australian investors to gain exposure to the artificial intelligence (AI) boom.

I think the opportunity could become much larger from here.

For investors comfortable with the risks that come with such rapid expansion, NEXTDC would be high on my ASX AI buy list.

AI needs somewhere to run

The investment case starts with a simple physical constraint.

AI requires enormous amounts of computing power, and that infrastructure needs secure buildings, huge amounts of electricity, sophisticated cooling, and reliable connections to networks and cloud platforms.

NEXTDC builds and operates the data centres that bring those requirements together.

AI is also changing what customers need from these facilities. NEXTDC says demand is moving towards larger deployments, higher power densities, and infrastructure capable of supporting advanced computing and liquid cooling.

I like this position because NEXTDC does not need to predict which AI model or application will eventually dominate.

If companies continue spending heavily on computing infrastructure, they will need somewhere capable of running it.

Customers are already committing

The strongest part of the story for me is that NEXTDC is seeing customers reserve enormous amounts of capacity ahead of delivery.

At the end of FY26, contracted utilisation had reached 740.1MW, while only 175MW was already billing.

That gap represents a substantial amount of contracted capacity still to be built, delivered, and eventually converted into revenue.

Earlier in 2026, NEXTDC estimated that its contracted utilisation at the time could generate more than $1 billion of EBITDA once delivered, without assuming additional customer wins.

For me, this makes the AI thesis much more tangible.

NEXTDC is investing billions of dollars because customers are signing contracts for capacity, rather than management simply building facilities and hoping demand arrives later.

There is a price for rapid expansion

This opportunity requires an extraordinary amount of capital.

NEXTDC has been raising equity, debt, and hybrid funding to accelerate construction, while major developments need access to land, power, equipment, and skilled workers.

Execution therefore becomes critical. Delays, cost overruns, financing pressures, or slower AI infrastructure spending could all hurt returns. Investors also need patience because there can be a long gap between signing a customer and the new capacity beginning to generate revenue.

I think those risks justify treating NEXTDC as a growth investment rather than assuming AI demand guarantees success.

Foolish takeaway

What excites me about NEXTDC is the amount of future business already taking shape.

AI is pushing computing requirements sharply higher, and customers are committing to NEXTDC’s capacity years before much of it starts billing.

There is a lot of expensive construction still ahead, but I think this ASX stock has positioned itself in a valuable part of the AI infrastructure chain.

If it delivers the capacity already contracted and continues winning demand, I believe it could become one of the ASX’s standout long-term AI investments.

The post Could this be one of the best AI investments on the ASX? appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Boss Energy, Magellan, and NextDC shares
• 5 ASX 200 shares with 33% to 61% upside post-results: experts

Motley Fool contributor Grace Alvino 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.