RCEL Stock Forecast & Price Target

Avita Medical reported revenue of $18.4 million, reflecting a year-over-year growth of approximately 21%, which indicates strong market demand and financial performance of its RECELL system. The company has successfully delivered robust clinical validation, demonstrating that RECELL technology can significantly reduce hospital stays for adults with deep partial-thickness burns by 36% compared to traditional grafting methods. Furthermore, the strategic acquisition of CE Mark approval for RECELL GO enhances Avita's product portfolio in Europe, positioning the company favorably within the acute wound care market and potentially accelerating the adoption of its innovative treatments.

AVITA Medical has revised its full-year 2025 revenue guidance downward to a range of $76 million to $81 million, significantly decreased from the prior forecast of $100 million to $106 million. Additionally, the company's gross profit margin has declined to approximately 81.2% from 86.1%, attributed to shifts in product mix and revenue sharing from newer product lines. This combination of reduced revenue expectations and shrinking profit margins indicates underlying challenges, which contribute to a negative outlook for the company’s stock.