AVITA Medical has appointed Cary Vance as Interim CEO following the sudden departure of Jim Corbett, along with a Board reshuffle. The company also announced preliminary third-quarter revenue guidance of about $17 million and is renegotiating financial covenants with OrbiMed.
See our latest analysis for AVITA Medical.
AVITA Medical’s share price has experienced a steep drop, with a 1-day return of -25.84% that extends a longer downtrend; its share price return is now down 68.8% year-to-date and the total shareholder return over the past year is -62.46%. Although new leadership and ongoing financial negotiations have triggered heightened volatility, these developments highlight how shifts in management and guidance can dramatically alter risk perceptions and momentum. Longer-term returns also remain deeply negative.
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With the share price at multiyear lows and uncertainty clouding the outlook, investors now face a pivotal question: is AVITA Medical undervalued after recent events, or does the current price already reflect limited growth prospects?
Market watchers are comparing AVITA Medical’s last close of $3.99 to a narrative fair value estimate of $8.26 per share, highlighting a sharp disconnect between recent price action and what analysts believe the company is worth. The narrative points to several potential catalysts that could change the trajectory for AVITA and shift sentiment.
“Launch and rapid initial uptake of Cohealyx and PermeaDerm, supported by their integration with RECELL in a comprehensive wound care portfolio, positions AVITA to capture new indications and patient segments beyond burns (e.g., trauma), increasing the company’s total addressable market and diversifying future revenue streams.”
Read the complete narrative.
Want to know what bold growth assumptions power this deeply discounted fair value? Find out which future milestones and transformative launches could unlock the upside. The secret behind this projection is a set of aggressive profit margin and sales targets. What exactly are they?
Result: Fair Value of $8.26 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, persistent Medicare reimbursement delays and continued reliance on RECELL for growth could significantly undermine the bullish narrative and extend uncertainty for investors.
Find out about the key risks to this AVITA Medical narrative.