RCEL Stock Forecast & Price Target

Avita Medical's RECELL system demonstrates promising potential with a model forecasting modest high-single-digit growth among burn and trauma centers, supported by improved surgeon productivity metrics. The company has shown notable improvement in cash usage, reducing it from approximately $10.1 million in Q2 to $6.2 million in Q3, alongside strategic amendments to its credit agreements, bolstering its financial stability. Additionally, the anticipated stabilization of reimbursements under Category I CPT codes, along with the expected expansion of the RECELL system into international markets, positions Avita well for accelerated growth in the coming fiscal years.

Avita Medical has revised its full-year 2025 revenue forecast downward to $70 million to $74 million, reflecting a decrease from the previously expected range of $76 million to $81 million. Additionally, projected revenues for fiscal year 2026 are forecasted to grow only 17% to $85.1 million, which remains below consensus estimates, indicating continued challenges in demand and productivity within the burn treatment market. The company is facing significant headwinds from reimbursement issues, limited capital resources, and sustained downward revisions in financial guidance, raising concerns about its ability to execute effectively in its key markets.