Avita Medical (RCEL – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Josh Jennings from TD Cowen maintained a Buy rating on the stock and has a $25.00 price target.
Josh Jennings has given his Buy rating due to a combination of factors concerning Avita Medical’s financial performance and future prospects. Avita’s first-quarter sales aligned with the company’s updated guidance from April, showcasing stability in their financial reporting. Most notably, Jennings highlights Avita’s confidence in achieving full-year revenue targets, despite expecting them at the lower end of their forecast range. This suggests a significant anticipated growth in the latter half of the year, backed by an array of upcoming milestones in Avita’s pipeline, which could catalyze further business expansion.
The company’s recent commercial revenue report showed a year-over-year increase of 6%, meeting both the consensus estimates and the company’s own projections for the first quarter. Avita’s gross margin was also notably high at 86.4%. While there’s a conservative estimate for the second quarter’s revenue, the company’s overall projected revenue growth for the year is a robust ~57%. This indicates that Avita is on track to accelerate its growth as the year progresses, providing a solid basis for Jennings’s optimistic Buy rating.
In another report released yesterday, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $21.00 price target.
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Avita Medical (RCEL) Company Description:
Avita Medical Ltd. engages in the development and distribution of regenerative and respiratory medicine and treatments. It operates through the following segments: Asia Pacific, Europe, and Americas. The Asia Pacific, Europe, and Americas segments involve in the sale of RECELL Devices. The company was founded on December 21, 1992 and is headquartered in Royston, the United Kingdom.
