On Tuesday, Cantor Fitzgerald reaffirmed its Overweight rating and $21.00 price target for Avita Medical Ltd . (NASDAQ: NASDAQ:RCEL), suggesting nearly 80% upside from the current price of $11.75. According to InvestingPro data, analyst targets range from $11.38 to $20.94, with the stock showing significant price volatility over the past year.
The endorsement follows the recent FDA premarket approval for Avita's RECELL GO Mini, a new device aimed at treating smaller wounds. This approval is anticipated to expand the company's market reach within its full thickness skin defect indication.
The RECELL GO Mini is a miniaturized version of the company's existing RECELL GO device, which is designed for larger wounds. The new device will cater to a previously unaddressed need for treatment options for smaller wounds. The FDA's approval marks a significant milestone for Avita Medical (TASE:PMCN), enabling it to provide solutions for a broader range of wound care scenarios. The company has demonstrated strong revenue growth of 32% over the last twelve months, though InvestingPro analysis indicates it's currently burning through cash rapidly.
Cantor Fitzgerald's analyst highlighted the strategic importance of the RECELL GO Mini's approval, expecting it to enhance Avita Medical's offerings in trauma and burn centers. These healthcare facilities often encounter cases that require treatment for smaller wounds, and the RECELL GO Mini is now positioned to meet this demand.
The firm's analyst expressed confidence in Avita Medical's potential, noting that the company is poised to roll out the RECELL GO Mini across relevant medical centers during the first quarter of 2025. This move is seen as a step towards solidifying Avita Medical's presence in the wound care market and expanding its customer base. While the company maintains a strong gross profit margin of 86%, InvestingPro data reveals several additional insights about the company's financial health and market position, available in the comprehensive Pro Research Report.
Avita Medical's stock continues to be monitored by investors as the company prepares to introduce the RECELL GO Mini to the market. The Overweight rating and price target affirmation by Cantor Fitzgerald reflect a positive outlook on the company's growth prospects following the FDA's approval of its new medical device.
In other recent news, Avita Medical has been making significant strides in the healthcare sector.
The US Food and Drug Administration (FDA) recently approved the premarket approval supplement for Avita Medical's Recell Go mini, an addition to the company's skin-repair product line. This mini disposable cartridge is designed for smaller wounds up to 480 square centimeters, with the rollout commencing at trauma and burn centers treating such wounds.
In terms of financial performance, Avita Medical reported a 29% increase in commercial revenue from the previous quarter, reaching $19.5 million, during their Third Quarter 2024 Earnings Call. This indicates a robust growth of 44% year-over-year. Despite reporting a net loss for the quarter, the company has several new products, including Cohealyx and RECELL GO Mini, lined up for launch.
The RECELL GO platform, which now represents 75% of the company's revenue, is set to expand internationally. The company is also progressing towards achieving cash flow break-even and GAAP profitability by Q3 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.