Josh Jennings, an analyst from TD Cowen, maintained the Buy rating on Avita Medical (RCEL – Research Report). The associated price target was lowered to $12.50.
Josh Jennings has given his Buy rating due to a combination of factors including Avita Medical’s strong growth potential and its strategic product launches. Despite a slight miss in first-quarter sales compared to market expectations, the company demonstrated impressive year-over-year revenue growth of 67%, driven by the deployment and adoption of its RECELL Go system.
Avita’s management remains confident in its 2025 revenue guidance, projecting substantial growth with new products like RECELL Go mini and Cohealyx expected to significantly contribute to future sales. The company’s robust gross margin and strategic expansion into new accounts further support the positive outlook, making Avita Medical a compelling investment opportunity according to Jennings.