AVITA Medical Inc

AVH: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$1.10	Plttz	Mfbqnkr

Avita Medical: New Debt Provides Breathing Room on Path to Profitability

Shane Ponraj

Oct 19, 2023

We maintain our AUD 5.60 fair value estimate for no-moat Avita Medical. Third-quarter 2023 commercial revenue grew 16% on the second quarter to USD 13.5 million, in line with our forecast and prior guidance. Gross margin also expanded to 84.5% versus 81% in the second quarter, largely tracking in line with our unchanged 83% full-year forecast. The firm reiterated its 2023 commercial revenue guidance of USD 51 million to USD 53 million, versus our unchanged USD 52 million forecast.

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