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Investing.com - D. Boral Capital has lowered its price target on Avita Medical Ltd. (NASDAQ:RCEL) to $14.00 from $18.00 while maintaining a Buy rating on the stock. The medical device company, currently trading at $4.29, has seen its shares decline over 66% year-to-date, according to InvestingPro data.
The price target reduction follows Avita Medical’s August 12, 2025 private placement of approximately 17.2 million new CDIs, which raised about $15 million for the company.
D. Boral Capital estimates that the financing increases Avita Medical’s share count from roughly 26.4 million to 43.6 million shares, creating dilution for existing shareholders.
The research firm specifically cited this dilution as the reason for lowering its price target on the medical device company’s stock.
Despite the price target reduction, D. Boral Capital has maintained its Buy rating on Avita Medical shares, suggesting continued confidence in the company’s underlying business fundamentals. This optimism may be supported by the company’s strong revenue growth of 38% over the last twelve months, though InvestingPro data reveals 8 additional key insights about the company’s financial health and prospects.
In other recent news, Avita Medical reported its Q2 2025 earnings, which revealed a net loss of $0.38 per share. This was higher than the analysts’ expectation of a $0.25 loss per share. The company experienced a 21% year-over-year increase in commercial revenue, reaching $18.4 million, but this fell short of the projected $22.51 million. Additionally, Avita Medical announced a placement agreement with MST Financial Services for the sale of 17,201,886 CHESS Depositary Interests to Australian investors, expecting to raise approximately US$15 million.
In a move that could influence investor sentiment, Lake Street Capital Markets assumed coverage of Avita Medical with a Buy rating and set a price target of $8.00. The research firm pointed out that Medicare Administrative Contractor adjudications began in July, with broader compliance anticipated in the second half of 2025. This development suggests that the reimbursement issues affecting the first half of the year are on track for resolution. These updates reflect the ongoing developments surrounding Avita Medical’s financial and strategic positioning.
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