Avita Medical downgraded to Neutral from Buy at BTIG

BTIG downgraded Avita Medical to Neutral from Buy without a price target. While BTIG initially saw FY24 guidance as a sign Avita was making positive progress through Value Analysis Committee approvals and new rep hires, this is the second time guidance has been lowered due to the slower-than-expected conversion rate of new accounts for full-thickness skin defects, and Avita may have set too aggressive of a pace through the year, the analyst tells investors in a research note. The launch of soft tissue should ultimately be successful longer term, but BTIG expects numbers may have to move lower again in FY24 and ultimately be reset as management has not left enough room for these VAC dynamics.