
If you are in the market for some new portfolio additions, it could be worth seeing what the team at Bell Potter is saying about the three ASX shares in this article.
Does the broker rate them as buys, holds, or sells? Let’s find out:
Mesoblast Ltd (ASX: MSB)
Bell Potter notes that this biotechnology company released its quarterly update and revealed Ryoncil sales of US$28 million, which was well short of its forecast of US$40 million.
However, it points out that revenues were adversely impacted by low patient numbers across the summer months, with the low point in August.
As a result, the broker remains positive and has retained its buy rating on Mesoblast shares with a slightly trimmed price target of $4.40. It said:
The miss on September quarter revenues requires a downgrade to the forecast for FY27 Ryoncil revenues. The forecast is lowered by 18% ($243m to $203m) with the NPAT reduced by a similar quantum to $26.7m. The FY28 revenue forecast is reduced by 7%, however, there are no changes to the long-term outlook. Price target is reduced to $4.40.
PLS Group Ltd (ASX: PLS)
Bell Potter has also been looking at lithium giant PLS Group. It highlights that the company has announced plans to double Pilgangoora nameplate spodumene concentrate capacity to 2Mtpa.
A feasibility study outlined development capex of $1.9 billion, with an incremental net present value (8% discount rate) of $2.7 billion.
In response, the broker has retained its buy rating on PLS shares with a trimmed price target of $4.10. It said:
While P2000 introduces medium-term execution risk, completion will meaningfully strengthen PLS’ long-term position as a large, low-cost hard-rock lithium producer. The company retains offtake optionality with ~50% of FY30 expected SC production of 2Mtpa uncontracted. Colina development studies are progressing, providing additional organic growth optionality in markets with strong underlying demand fundamentals from EV adoption and BESS deployment.
Seek Ltd (ASX: SEK)
The broker isn’t quite as positive on this job listings company’s shares.
However, it was pleased to see that Seek’s job ad volume index slowed its annual rate of decline to -3.5% in September (Aug -5.3%). It also printed a third consecutive non-negative month on month number.
In response to the news, the broker has retained its hold rating on Seek shares with an improved price target of $13.60. It said:
We await a positive shift in sentiment or further visibility on jobs volumes recovery; potential near term Growth Fund monetisation remains an asymmetric upside risk, though the current interest rate backdrop may also be an additional headwind in seeking a desired exit price for nominated assets.
SEK appears to be improving operations to sustainably target 10% yield growth on top of strong cost controls, however, despite trading at deep value ex. Growth Fund, macro-based headwinds suggest difficult sentiment near-term for the stock. Maintain Hold.
The post Buy, hold, sell: Mesoblast, PLS, and SEEK shares appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro 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.

