AVITA Medical: D. Boral Capital Downgrades to Buy, PT $14 from $18.

AVITA Medical: D. Boral Capital Downgrades to Buy, PT $14 from $18.

In a recent development, D. Boral Capital has downgraded its rating for AVITA Medical, Inc. from "Buy" to "Buy" with a price target of $14, a significant reduction from the previous $18. This move comes amidst growing concerns over the company's financial performance and regulatory challenges.

AVITA Medical, a leading therapeutic acute wound care company, specializes in delivering transformative solutions, particularly with its RECELL® System, which has shown significant promise in reducing hospital stays for burn patients. However, recent data from the U.S. national burn registry indicates that the use of RECELL has led to a 36% reduction in hospital length of stay (LOS) compared to traditional split thickness skin grafts (STSG) [1]. This reduction not only benefits patients but also offers substantial cost savings, with potential per patient cost savings exceeding $42,000 [1].

Despite these advancements, AVITA Medical has faced several challenges. In August 2025, the company reported a six-month backlog in unpaid provider claims for RECELL procedures, impacting first-half demand. This backlog led to uncertainty among providers regarding payment expectations and timelines, resulting in a reduction in RECELL utilization during the first half of the year. Consequently, AVITA's stock price fell by 21% on August 8, 2025 [2].

The ongoing securities fraud investigation into AVITA Medical, conducted by Glancy Prongay & Murray LLP on behalf of investors, adds to the company's challenges. Investors who lost money on AVITA Medical are urged to contact Glancy Prongay & Murray LLP to potentially pursue claims to recover their losses [2].

In response to these developments, D. Boral Capital has reassessed its investment thesis and downgraded its price target. The firm's analysts have highlighted the need for AVITA Medical to address the backlog of unpaid claims and navigate the ongoing regulatory scrutiny to restore investor confidence and stabilize its financial performance.

References:
[1] https://www.globenewswire.com/news-release/2025/09/04/3144402/0/en/Real-World-Data-Shows-Significant-Reduction-in-Hospital-Stay-Using-AVITA-Medical-s-RECELL-System.html
[2] https://www.globenewswire.com/news-release/2025/09/04/3144754/34548/en/Securities-Fraud-Investigation-Into-AVITA-Medical-Inc-RCEL-Continues-Investors-Who-Lost-Money-Urged-To-Contact-Glancy-Prongay-Murray-LLP-a-Leading-Securities-Fraud-Law-Firm.html