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 target price lowered by Lake Street Capital from $14.00 to $8.00 in a report issued on Monday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Lake Street Capital's price target suggests a potential upside of 42.10% from the company's current price.

Other analysts also recently issued research reports about the company. Wall Street Zen downgraded Avita Medical from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. BTIG Research downgraded Avita Medical from a "neutral" rating to a "sell" rating and set a $3.00 price objective on the stock. in a report on Friday, August 8th. Finally, D. Boral Capital lowered their target price on Avita Medical from $19.00 to $18.00 and set a "buy" rating on the stock in a research note on Friday, August 8th. Two equities research analysts have rated the stock with a sell rating, one has given a hold rating and three have issued a buy rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $12.40.

Avita Medical Price Performance

RCEL stock traded down $0.17 during trading on Monday, hitting $5.63. The company had a trading volume of 545,616 shares, compared to its average volume of 418,103. The firm has a market capitalization of $149.87 million, a price-to-earnings ratio of -2.86 and a beta of 1.63. The business has a 50 day moving average of $5.46 and a 200 day moving average of $7.42. Avita Medical has a fifty-two week low of $3.60 and a fifty-two week high of $14.16. The company has a current ratio of 0.58, a quick ratio of 1.72 and a debt-to-equity ratio of 9.39.

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

Institutional Investors Weigh In On Avita Medical

Several large investors have recently made changes to their positions in RCEL. BNP Paribas Financial Markets bought a new stake in Avita Medical during the fourth quarter worth approximately $38,000. CWM LLC boosted its position in Avita Medical by 1,099.5% during the first quarter. CWM LLC now owns 4,918 shares of the company's stock worth $40,000 after purchasing an additional 4,508 shares during the period. GAMMA Investing LLC lifted its holdings in shares of Avita Medical by 688.9% during the first quarter. GAMMA Investing LLC now owns 6,374 shares of the company's stock worth $52,000 after buying an additional 5,566 shares during the last quarter. Meeder Asset Management Inc. acquired a new position in shares of Avita Medical during the first quarter worth approximately $53,000. Finally, Russell Investments Group Ltd. raised its stake in shares of Avita Medical by 48.0% in the fourth quarter. Russell Investments Group Ltd. now owns 7,164 shares of the company's stock valued at $92,000 after purchasing an additional 2,324 shares in the last quarter. Institutional investors own 27.66% of the company's stock.

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.