Avita Medical downgraded to Neutral from Overweight at Piper Sandler

Piper Sandler analyst Matt O’Brien downgraded Avita Medical to Neutral from Overweight with a price target of $9, down from $21, post the Q1 report. The company’s Q2 outlook only steepens the back half ramp to hit its full year guidance, which Piper does not believe is achievable, the analyst tells investors in a research note. Further, Avita’s vice president of sales just left, which usually results in a loss in sales force focus and productivity, says the firm. Piper likes Avita’s technology but sees an increased risk profile following the earnings report.