AVITA MEDICAL INC (AVH)
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21/08/2026

1

Speculative Buy

$3.70

-18.68%

Bell Potter observes Avita Medical announced positive results from a 40-patient clinical trial comparing PermeaDerm with cadaveric allograft for temporary wound treatment before final closure.

PermeaDerm is reducing treatment costs by -70% and preparation time by -96% while achieving comparable clinical outcomes.

The broker notes PermeaDerm remains a modest revenue contributor, but alongside Cohealyx broadens the acute wound care offering and provides meaningful scope to deepen portfolio penetration across existing hospital accounts.

As 2025 reimbursement and execution issues recede, revenue growth re-accelerates and cash consumption moderates, the analyst sees scope for further re-rating, although debt and liquidity remain key constraints.

A lower cost of capital raises the target to $3.70 from $2.10. Speculative Buy rating retained.

FORECAST
Bell Potter forecasts a full year FY26 dividend of 0.00 cents and EPS of minus -101.65 cents.
Bell Potter forecasts a full year FY27 dividend of 0.00 cents and EPS of 9.75 cents.

09/11/2026

1

Buy

$5.92

30.11%

Canaccord Genuity maintains a Buy rating for Avita Medical with its target price increased to $5.92 from $4.74 following a record third-quarter sales result.

The analyst notes total revenue reached US$26.1m, a 53% year-on-year increase that beat the broker's estimate by 15%, driven by strong organic utilisation and expanded account penetration for the RECELL product line.

Canaccord highlights that the Centers for Medicare & Medicaid Services confirmed a Final Rule establishing national physician reimbursement for RECELL, replacing the previous regional approach and positioning the franchise to effectively convert its growing addressable market.

Following upgraded full-year revenue guidance of US$92m to US$94m, Canaccord raises its FY26 sales estimate toward the top end of this range while noting the company reiterated its goal to achieve operating cash-flow breakeven in the fourth quarter.

The target price upgrade reflects an expansion in the applied valuation multiple from 5.0x to 6.0x FY27 EV/sales, as Canaccord assesses that recent reimbursement developments and growing attachment rates can support sustained revenue growth above 20%.