AVITA Medical Inc

AVH: XASX (AUS)
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Avita Medical: Shares Remain Undervalued With Long-Term Opportunity Intact

No-moat Avita Medical downgraded its fourth-quarter 2024 commercial revenue guidance by 21% to USD 18 million. It now expects full-year commercial revenue of USD 64 million compared with its previous guidance of USD 68 million-USD 70 million. The downgrade implies fourth-quarter 2024 commercial revenue declining 6% on third quarter 2024's. We have cut our 2024 revenue forecast by 6% to USD 65 million but leave our long-term estimates unchanged. We keep our AUD 5.40 fair value estimate with the time value of money and a stronger US dollar offsetting our near-term downgrade.

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