Lake Street Capital Issues Pessimistic Forecast for Avita Medical (NASDAQ:RCEL) Stock Price

Key Points

• Lake Street Capital has reduced its price target for Avita Medical from $14.00 to $8.00, suggesting a potential upside of 66.67% from the stock's previous close.
• Other analysts have expressed pessimism, with a downgrade from BTIG Research to a "sell" rating and a price target of $3.00, while the average consensus target price is $12.40.
• Avita Medical reported a loss of ($0.38) EPS for the last quarter, missing expectations significantly, with revenue of $18.42 million compared to an anticipated $34.27 million.

Avita Medical (NASDAQ:RCEL - Get Free Report) had its price target reduced by stock analysts at Lake Street Capital from $14.00 to $8.00 in a research note issued on Monday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Lake Street Capital's target price indicates a potential upside of 66.67% from the company's previous close.

RCEL has been the subject of a number of other research reports. BTIG Research downgraded shares of Avita Medical from a "neutral" rating to a "sell" rating and set a $3.00 price objective for the company. in a research report on Friday. Wall Street Zen lowered shares of Avita Medical from a "hold" rating to a "sell" rating in a report on Saturday. Finally, D. Boral Capital dropped their price target on shares of Avita Medical from $19.00 to $18.00 and set a "buy" rating on the stock in a research report on Friday. Two analysts have rated the stock with a sell rating, one has assigned a hold rating and three have given a buy rating to the company. According to data from MarketBeat.com, Avita Medical currently has an average rating of "Hold" and a consensus target price of $12.40.

Avita Medical Trading Up 12.9%

NASDAQ RCEL traded up $0.55 during trading hours on Monday, hitting $4.80. The company's stock had a trading volume of 550,874 shares, compared to its average volume of 267,774. The stock has a fifty day moving average of $5.50 and a 200 day moving average of $7.53. Avita Medical has a twelve month low of $3.60 and a twelve month high of $14.16. The firm has a market capitalization of $126.86 million, a P/E ratio of -2.44 and a beta of 1.63. The company has a quick ratio of 1.72, a current ratio of 2.09 and a debt-to-equity ratio of 9.39.

Avita Medical (NASDAQ:RCEL - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported ($0.38) EPS for the quarter, missing the consensus estimate of ($0.26) by ($0.12). Avita Medical had a negative net margin of 68.87% and a negative return on equity of 1,272.91%. The firm had revenue of $18.42 million during the quarter, compared to the consensus estimate of $34.27 million. Equities research analysts forecast that Avita Medical will post -0.95 earnings per share for the current fiscal year.

Institutional Trading of Avita Medical

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BNP Paribas Financial Markets purchased a new position in Avita Medical during the fourth quarter valued at $38,000. CWM LLC increased its stake in Avita Medical by 1,099.5% in the 1st quarter. CWM LLC now owns 4,918 shares of the company's stock worth $40,000 after buying an additional 4,508 shares during the period. GAMMA Investing LLC increased its position in Avita Medical by 688.9% during the 1st quarter. GAMMA Investing LLC now owns 6,374 shares of the company's stock valued at $52,000 after purchasing an additional 5,566 shares during the period. Meeder Asset Management Inc. purchased a new position in Avita Medical during the 1st quarter valued at about $53,000. Finally, Russell Investments Group Ltd. grew its position in shares of Avita Medical by 48.0% in the 4th quarter. Russell Investments Group Ltd. now owns 7,164 shares of the company's stock worth $92,000 after buying an additional 2,324 shares during the last quarter. 27.66% of the stock is owned by hedge funds and other institutional investors.

About Avita Medical

AVITA Medical, Inc, together with its subsidiaries, operates as a regenerative medicine company in the United States and internationally. The company's lead product is the RECELL System, a cell harvesting device used for the treatment of thermal burn wounds, full-thickness skin defects, and repigmentation of stable depigmented vitiligo lesions.

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