Buy, Hold, Sell: Mesoblast, Transurban and NEXTDC Shares

Mesoblast Limited, Transurban Group and NEXTDC Limited have varying business performances and growth prospects, receiving Buy, Hold and Sell recommendations, respectively.

1. Mesoblast Limited (ASX: MSB) — Buy

Mesoblast Limited (ASX: MSB) reported on 23 September 2026 that it received FDA approval for a new TIBA test for Ryoncil. The test will help monitor the potency and stability of the product in every commercial lot.

On 27 August 2026, Mesoblast reported FY2026 revenue of US120.3million,upfromUS17.2 million in the previous year. Ryoncil generated US115.2 million in net revenue,whilegross profit reached US103.6 million. The net loss fell to US57.5million,andcashreservesstoodatUS103 million. Ryoncil had been adopted by more than 50 US sites.

Mesoblast completed treatment of 350 patients in its Phase 3 trial for chronic low back pain, with results expected in mid-2027. The company is also working to expand Ryoncil's use in adults and develop treatments for Duchenne muscular dystrophy.

In light of its revenue growth, commercial success and future prospects, we recommend a Buy rating on Mesoblast shares.

2. Transurban Group (ASX: TCL) — Hold

Transurban Group (ASX: TCL) announced on 1 October 2026 an agreement to acquire Canada Pension Plan Investment Board's interests in Australian toll road assets for total cash consideration of A$4.5 billion. The transaction covers additional stakes in NorthWestern Roads Group (NWRG) and Sydney Transport Partners (STP).

Following completion, Transurban's ownership in NWRG, which owns Westlink M7 and NorthConnex, will rise from 50% to 75%. Its interest in STP, which owns WestConnex, will increase from 50% to 60.5%.

The acquisition is expected to increase free cash per security over the medium and long term, with completion anticipated during calendar 2027, subject to regulatory and contractual approvals.

The acquisition will initially use committed debt facilities, with refinancing planned over time and no equity funding required. Transurban expects its credit ratings to remain unchanged. The deal will not affect FY27 free cash or distributions.

Considering the expected long-term benefits and the company's funding plans, we recommend a Hold rating on Transurban shares.

3. NEXTDC Limited (ASX: NXT) — Sell

NEXTDC Limited (ASX: NXT) announced on 18 September 2026 that its A$1.1 billion convertible notes, due in 2031, were settled on 17 September. The notes carry annual interest of 1.75%, paid every six months. The delta placement was completed on 14 September without issuing new shares or raising money for the company.

In its FY26 results announcement, NEXTDC reported revenue of A405 million,up16%,and underlying EBITDA of A248.8 million, up 15%. Capital spending reached A$3.397 billion, above guidance. Contracted utilisation rose to 740.1 MW, while billing utilisation reached 175 MW by 30 June 2026.

NEXTDC is benefiting from rising demand for AI data centres, but expansion requires substantial funding. Since August 2025, the company has raised A$9.75 billion. Higher interest costs could reduce profits before new capacity starts generating sufficient revenue and cash flow.

Given the substantial funding requirements and potential pressure from higher interest costs, we recommend a Sell rating on NEXTDC shares.

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Source: Company reports.