RCEL Stock Forecast & Price Target

Avita Medical is poised for growth, as evidenced by projected modest high-single-digit growth in burn centers and improved surgeon productivity, with a projected increase of approximately 3.2%. Notably, the company has successfully reduced cash use to approximately $6.2 million in Q3 from $10.1 million in Q2, while amending its credit agreement to align with a revised revenue covenant of $70 million for Q4. With clinical data supporting RECELL's efficacy and cost-effectiveness, along with anticipated stabilization of reimbursements under Category I CPT codes, Avita is strategically positioned for increased market penetration and operational efficiency in the coming years.

Avita Medical has revised its full-year 2025 revenue guidance to a range of $70 million to $74 million, down from the previous estimate of $76 million to $81 million, illustrating a significant decline in projected performance. The company anticipates only a 2% decline in productivity per surgeon for FY26, resulting in total revenue growth of 17% to approximately $85.1 million, which is still below consensus expectations. Challenges such as poor guidance, reimbursement difficulties, and a limited capital position, alongside a history of declining revenue projections, contribute to a negative outlook for Avita Medical's stock.