RCEL Stock Forecast & Price Target

Avita Medical's RECELL system, an innovative burn treatment device, is positioned for growth in the U.S. market as it expands its rollout across approximately 136 burn centers, with a noted modest high-single-digit growth anticipated in both burn and trauma centers. Financially, Avita demonstrated significant improvement in cash usage, reducing it to approximately $6.2 million in Q3 from $10.1 million in Q2, while also amending its credit agreement to facilitate future growth and stability. The company is expected to benefit from stabilizing reimbursements under Category I CPT codes and positive clinical data, further enhancing confidence in its operational and financial trajectory.

Avita Medical has revised its full-year 2025 revenue expectations down to $70 million to $74 million, a decrease from previous guidance of $76 million to $81 million, indicating ongoing challenges in market demand and utilization. Revenue projections for fiscal year 2026 suggest only moderate growth, with a forecast of $85.1 million, which remains below consensus estimates, complicating long-term profitability prospects. Additionally, the company faces significant risks, including further guidance reductions, limited capital resources, and persistent reimbursement difficulties with third-party payers.