Analyst Josh Jennings of TD Cowen maintained a Buy rating on Avita Medical (RCEL – Research Report), retaining the price target of $15.00.
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Josh Jennings has given his Buy rating due to a combination of factors that highlight Avita Medical’s strong financial performance and promising growth outlook. The company reported a 30% increase in revenue for the fourth quarter, aligning with its January preannouncement, and projected a 29% growth for the financial year 2024. Additionally, Avita’s revenue guidance for 2025 is set between $100 million and $106 million, reflecting a potential growth of 55-65%.
While these figures underscore Avita’s robust sales trajectory, Jennings also notes the company’s evolving profitability, with a target for cash flow positivity in the second half of 2025. The transition to RECELL GO and increased market penetration have contributed to impressive quarterly gross margins, reported at 87.6%. These factors combined suggest a positive outlook for Avita, justifying the Buy rating.