AVITA Medical Inc
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| LOCK|Pn#!H& | LOCK|$h@ | LOCK|C#vXKNj |
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.
