Shareholders of AVITA Medical, Inc. (NASDAQ:RCEL) will be pleased this week, given that the stock price is up 16% to US$11.95 following its latest quarterly results. It was a pretty bad result overall; while revenues were in line with expectations at US$20m, statutory losses exploded to US$0.64 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for AVITA Medical

After the latest results, the nine analysts covering AVITA Medical are now predicting revenues of US$105.2m in 2025. If met, this would reflect a substantial 75% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 55% to US$0.99. Before this latest report, the consensus had been expecting revenues of US$101.2m and US$0.96 per share in losses. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although there was a nice uplift to revenue, the consensus also made a modest increase to its losses per share forecasts.

There was no major change to the consensus price target of US$15.33, with growing revenues seemingly enough to offset the concern of growing losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values AVITA Medical at US$21.02 per share, while the most bearish prices it at US$11.84. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that AVITA Medical's rate of growth is expected to accelerate meaningfully, with the forecast 57% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 30% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 21% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that AVITA Medical is expected to grow much faster than its industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at AVITA Medical. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple AVITA Medical analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with AVITA Medical .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.