Update shared on15 Aug 2025
AVITA Medical’s consensus price target remains unchanged as analysts respond to materially reduced guidance and persistent reimbursement issues—with bulls viewing the lowered expectations as prudent and bears citing execution risks and near-term revenue headwinds—leaving the fair value steady at $9.60.
Analyst Commentary
- Materially reduced guidance led to significant downward revisions in price targets.
- Company and Bullish analysts maintain confidence in a second half recovery and characterize the reset of expectations as prudent rather than structural.
- Bearish analysts point to continuous quarterly misses and multiple downward guidance revisions, raising concerns on execution and forecasting credibility.
- Persistent reimbursement issues with Medicare Administrative Contractors are impacting providers’ willingness to use Avita’s products, creating near-term revenue headwinds.
- Bearish analysts highlight risk of further demand declines and potential solvency issues if operational and reimbursement challenges are not addressed.
What's in the News
- Completed a follow-on equity offering, raising AUD 22.7 million via 17.2 million CHESS depositary interests at AUD 1.32 each, at a discount of AUD 0.0726 per security, with a subsequent direct listing.
- Lowered full-year 2025 revenue guidance to $76–81 million from $100–106 million due to slower sales and ongoing reimbursement issues; still projects 19–27% growth over 2024.
- Announced first clinical publication of Cohealyx™ collagen-based dermal matrix, demonstrating significantly faster wound bed vascularization and autograft readiness (5–10 days vs. 2–4 weeks), with positive functional recovery and potential to reduce patient burden.
Valuation Changes
Summary of Valuation Changes for AVITA Medical
- The Consensus Analyst Price Target remained effectively unchanged, at $9.60.
- The Future P/E for AVITA Medical has significantly fallen from 7.07x to 4.21x.
- The Discount Rate for AVITA Medical remained effectively unchanged, at 6.91%.
Disclaimer
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