Piper Sandler has downgraded AVITA Medical (NASDAQ:RCEL) to neutral, citing concerns about the company’s ability to hit its sales guidance numbers.
The investment bank said AVITA’s Q2 outlook “only steepens the back half ramp to hit full year guidance, which we do not believe is achievable.”
Piper also noted that AVITA’s vice president of sales has left the company, “only emboldening our concern about reaching the low end of sales guidance,” and that an increase in OPEX “raises the specter of another equity raise, although they do have a credit facility in place.”
The investment bank has a price target of $9 on the stock.
AVITA downgraded by Piper Sandler over sales outlook
