Should I Buy RCEL? RCEL 2026 Analysis

Should You Buy AVITA Medical Inc (RCEL) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

4.360

1 Day change

-1.80%

52 Week Range

11.250

Analysis Updated At

2026/01/26

AVITA Medical Inc (RCEL) is not a strong buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's financial performance is weak, with declining revenue and net income, and analysts remain cautious about its outlook. Additionally, technical indicators suggest the stock is overbought, and there are no strong positive catalysts or proprietary trading signals supporting an immediate buy decision.

Technical Analysis

The MACD is positive and expanding, indicating bullish momentum. However, the RSI is at 84.739, signaling the stock is overbought. Moving averages are converging, suggesting indecision in price movement. The stock is trading near resistance levels (R1: 4.345), which could limit further upside in the short term.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Hedge funds have significantly increased their buying activity by 534.61% over the last quarter. The MACD indicates positive momentum.

Neutral/Negative Catalysts

The stock is overbought based on RSI. Financial performance is weak, with declining revenue (-4.38% YoY) and net income (-100% YoY). Analysts maintain a cautious stance, with no strong buy ratings or significant price target upgrades. The stock has a 70% chance of declining in the short term based on candlestick pattern analysis.

Financial Performance

In Q4 2025, revenue dropped by -4.38% YoY to $17.6M. Net income fell to $0, a -100% YoY decline. EPS improved slightly to -0.46 (+4.55% YoY), but gross margin decreased to 82.21%, down -6.62% YoY. Overall, the financials indicate declining growth and profitability.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts are cautious. Lake Street raised the price target to $3.50 from $3 but maintained a Hold rating, citing the need for business stabilization. BTIG upgraded the stock to Neutral from Sell but did not provide a price target, noting the company's challenges are improving but not resolved.

3 Analyst Rating

Wall Street analysts forecast RCEL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for RCEL is 4.25 USD with a low forecast of 3 USD and a high forecast of 5.5 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

1 Buy

2 Hold

0 Sell

Moderate Buy

Current: 4.440

Low

Averages

4.25

High

5.5

Current: 4.440

Low

Averages

4.25

High

5.5

Lake Street

Hold

maintain

AI Analysis

2026-01-16

Reason

Lake Street

Price Target

AI Analysis

2026-01-16

maintain

Hold

Reason

Lake Street raised the firm's price target on Avita Medical to $3.50 from $3 and keeps a Hold rating on the shares. Debt refinancing was "a necessary step to remove near-term liquidity concerns," says the analyst, who thinks full Q4 results and commentary around reimbursement trends could provide incremental confidence into the outlook, but stays at Hold as the firm waits to see business stabilization.

BTIG

Sell -> Neutral

upgrade

2025-11-20

Reason

BTIG

Price Target

2025-11-20

upgrade

Sell -> Neutral

Reason

BTIG upgraded Avita Medical to Neutral from Sell with no price target following Q3 results and the CEO change that occurred as a result. Shares are down about 71% year-to-date and the firm thinks the company's "wounds are starting to heal or at least cannot get materially much worse," the analyst tells investors. While the firm shares are not quite at a place where it can recommend them, it adds that it is not inclined to recommend selling anymore either.

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RCEL Should I Buy

RCEL Should I Buy

Should You Buy AVITA Medical Inc (RCEL) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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