Analyst Josh Jennings of TD Cowen maintained a Buy rating on Avita Medical, retaining the price target of $5.50.
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Josh Jennings has given his Buy rating due to a combination of factors that highlight Avita Medical’s potential for growth and recovery. The company’s management has outlined strategic initiatives aimed at accelerating revenue growth, particularly through easing reimbursement challenges for their RECELL product. With finalized pricing decisions and progress in VAC approvals for Cohealyx and PermeaDerm, the company is poised to put its product portfolio back on track by 2026.
Furthermore, the interim CEO is focusing on improving execution by expanding the use of RECELL across various medical settings and ensuring a successful transition of the commercial organization. By targeting approximately 200 key U.S. burn and trauma centers, Avita Medical is tapping into a significant market opportunity. Despite current challenges, the CEO is confident that normalizing reimbursement transitions and hospital reviews will position the company to strengthen execution and advance its mission in acute wound care. The synergistic portfolio, with its three growth drivers, is expected to benefit from enhanced sales operations and increased adoption.
Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RCEL in relation to earlier this year.