This report is an updated version of the report published on 16 September 2025 at 11:59 AM AEST.

AVITA Medical, Inc. (ASX: AVH)

AVH is a regenerative medicine company aiming to revolutionize wound care management and skin restoration with its innovative devices. Its portfolio includes the FDA-approved RECELL® System, designed for treating thermal burn wounds, full-thickness skin defects, and repigmenting stable depigmented vitiligo lesions.

Recommendation Rationale – SELL at AUD 1.930

• Financial Highlights: Cost of sales increased to USD 3.47mn in Q2FY25 vs USD 2.11mn in Q2FY24, due to less profitable product mix, additional inventory adjustments, and operational disruptions from reimbursement delays. Cash and cash equivalents decreased to USD 12.22mn as on 30 June 2025 vs USD 14.05mn as on 31 December 2024.
• Trading Near the Resistance: With (14-day) RSI around 73.36 (overbought zone) and price crossing R2 level recommended on 8 September 2025, the stock may witness some consolidation before moving higher.
• Overvalued Multiples: On a trailing 12-month basis – key trading multiple (Price/Book) is higher than median of the Healthcare sector.
• Market Risk: Currency fluctuations, global economic trends, and temporary reimbursement disruptions (such as delays in Medicare Administrative Contractor payments) can create uncertainty in revenue and operations.

AVH’s Daily Price Chart

Valuation Methodology: EV/Sales Multiple Approach (FY December'26E) (Illustrative)

Stock might trade at a slight premium to its peers considering the YoY increase in revenue in 2QFY25, AVH’s RECELL system clinical adoption benefits, and anticipated revenue in FY25, etc. For valuation, few peers including, Aroa Biosurgery Ltd (ASX: ARX), Tissue Repair Ltd (ASX: TRP), Health Care Equipment (ASX: SOM), and other have been considered.

Considering that the stock has surpassed it R2 level, macroeconomic uncertainty, share price movement, current trading level, and risks associated, the share price can face consolidation at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 1.930, at 11:32 AM AEST, as of 16 September 2025.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 16 September 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.