RCEL Stock Forecast & Price Target

Avita Medical reported a revenue increase to approximately $71.6 million for the full year 2025, marking an 11% growth from $64.3 million in 2024, and falling within the company's revised guidance range. The company has shown positive underlying metrics, including modest growth in burn centers and improved productivity per surgeon, supported by compelling clinical data that highlights the efficacy and cost-effectiveness of the RECELL system compared to standard treatment approaches. Furthermore, with reimbursement expected to improve and a focus on stabilizing operations, Avita is strategically positioned for sustained growth with minimized additional spending requirements in the near term.

Avita Medical is facing a negative outlook primarily due to a significant reduction in revenue guidance for FY25, which has been lowered to between $70 million and $74 million, representing a year-over-year decline of 9% to 15%. This adjustment marks a substantial decline from the initial guidance of $100 million to $106 million, highlighting a decrease in demand for the RECELL system, particularly evidenced by a reported 20% drop in demand during the first half of FY25. Furthermore, ongoing challenges related to reimbursement from third-party payers and an overall limited capital position exacerbate the company's financial risks and contribute to a cautious sentiment regarding future growth and stock performance.