Avita Medical’s Strategic Expansion and Product Launches Justify Buy Rating

TD Cowen analyst Josh Jennings has reiterated their bullish stance on RCEL stock, giving a Buy rating on May 9.

Josh Jennings has given his Buy rating due to a combination of factors that highlight Avita Medical’s promising future. The company has significantly expanded its total addressable market (TAM) with the introduction of new products such as PermeaDerm and Cohealyx, which are expected to drive substantial growth. This expansion is poised to increase Avita’s TAM to over $3.5 billion, showcasing the company’s potential to capture a larger market share.
Avita’s transformation from a single-product company focused on burns to a comprehensive wound care provider has been a strategic move. The recent commercial launches of these new products indicate a potential revenue increase, aligning with Avita’s optimistic revenue guidance for 2025. The company’s broadened portfolio now allows it to address a wider range of injuries, enhancing its growth prospects and justifying the Buy rating.

In another report released on May 9, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $19.00 price target.