In afternoon trade, the Avita share price has shot up 8.33% to $1.30, taking its 1 week gain to almost 20%.

That surge is standing out against a weaker backdrop, with the S&P/ASX All Ordinaries Index (ASX: XAO) down 0.3% to 9,138 points. This comes as investors react to the latest developments in the Middle East between the US, Israel and Iran.

Fortunately for Avita, the rebound has been building for several sessions this week. The stock rose 6.31% on Wednesday and added another 1.69% on Thursday, despite widespread selling across the ASX.

Let's take a look at what's driving the shares higher.

Major US government deal supports sentiment

Avita's update this week appears to be the key catalyst, centred on a 10-year agreement with the US Biomedical Advanced Research and Development Authority (BARDA).

Worth up to US$25.5 million, the deal is aimed at strengthening US emergency preparedness for large-scale burn casualty events.

BARDA will have access to 3,000 units of Avita's RECELL treatment platform at any point during the contract period. Avita will also manage inventory, logistics support, and deployment readiness.

The full contract value includes procurement options that may not all be exercised. Avita said about US$3.97 million is expected to flow through as revenue over the 10-year term via annual access and readiness support fees.

The market is repricing execution risk

Friday's rally is also notable because it comes after a prolonged period of heavy selling in the stock.

Even with this week's rebound, Avita shares remain down more than 50% over the past 12 months. This shows how aggressively the market had already marked down execution risk and earnings uncertainty.

Foolish takeaway

Avita's sharp rebound this week shows how quickly sentiment can turn when a beaten-down small-cap healthcare stock lands a credible long-term government contract.

The BARDA update clearly improves revenue visibility and gives the market a stronger reason to revisit the recovery outlook.

That said, it is still a small-cap healthcare stock with elevated execution risk, and this week's rally does not change the fact that the shares remain down over the past year.

Personally, this is not the type of stock I would be chasing after a sharp short-term move. I would rather put my money into larger, more established businesses with steadier earnings and less share price volatility.

The post Why this ASX healthcare stock is surging while the market sinks on Middle East fears appeared first on The Motley Fool Australia.

This prompted updated guidance from the team at Morgans. 

Let's see what the company reported and how the broker reacted. 

AVITA Medical

AVITA Medical is a healthcare company specialising in regenerative medicine.

This ASX healthcare stock is down 60% over the last year. 

It released its full-year 2025 financial results last week. 

The company reported: 

• Total revenue of $71.6 million for full year 2025, compared to $64.3 million for full year 2024, representing an increase of approximately 11%, within the company's revised revenue guidance for the year.
• A gross profit margin of 82.1%.
• A net loss of $48.6 million, or a loss of $1.74 per basic and diluted share, compared to a net loss of $61.8 million, or a loss of $2.39 per basic and diluted share, in the prior year.
• Full year 2026 revenue guidance of between $80 and $85 million, representing growth of approximately 12% to 19% compared to 2025 revenue.
  

Commenting on the result, Cary Vance, Interim Chief Executive Officer of AVITA Medical, said: 

The fourth quarter marked the close of a year of stabilisation, and the beginning of a more execution-focused phase, for the Company. 

While reimbursement disruption and operational transition weighed on revenue performance in 2025, those issues are now largely behind us, and we are seeing early signs of normalisation in clinician use of RECELL.

We enter 2026 with a clearer commercial focus and a validated portfolio that supports Page 2 growth through deeper utilisation within our core burn and trauma centres, with our priority centred on delivering consistent, execution-led growth quarter by quarter.

Morgans' view following results

In a note out of the broker on Friday, Morgans said this healthcare stock's FY25 results broadly met expectations. 

It said FY25 revenue landed slightly ahead of its forecast, while gross margin was a touch softer as secondary products entered the mix. 

Morgans also commented that operating expense was more disciplined, cash burn improved and the cash runway extended via the new debt facility with a small increase in available debt, but more importantly improved trailing revenue covenants. 

We see the below-consensus FY26 guidance range as a positive, to reset market expectations and give a sense the company is aiming to restore credibility around guidance, which has been off the mark in recent years. Gradual but achievable.

Speculative buy recommendation 

Based on this guidance, the team at Morgans retained its speculative buy recommendation and price target of $1.35. 

This ASX healthcare stock closed trading last week at $1.08. 

From this share price, the team at Morgans anticipates an increase of approximately 25%. 

The post Broker tips 25% upside for this ASX healthcare stock following FY25 earnings results appeared first on The Motley Fool Australia.

Let's see what triggered these ratings. 

Biome Australia Ltd (ASX: BIO)

This ASX stock is technically in the consumer staples sector. However it licences, develops, and markets evidence-based, complementary medicines, including nutraceuticals vitamins and weight management products and live biotherapeutics.

Bell Potter has a "buy" recommendation and price target of $1.00 (previously $0.95). 

From this week's closing price of $0.465. This indicates a big upside of 115.05%. 

The broker said Biome Australia reported another record quarterly result, with cash receipts up c.84% yoy to c.$7.1m and positive Net Operating Cash Flow of c.+$0.9m which is tracking well toward BPe of c.$3.0m for FY26. 

The result reflected a strong rebound from 4Q25 which experienced a decline in both measures due to timing issues.

BIO's operating leverage is starting to come through and we would expect to see EBITDA improve further through FY26. If BIO maintains cost discipline, it should deliver a maiden free cash flow result this year.

The broker believes maintaining quality in its growth performance should eventually see it recognised by the market resulting in a re-rate.

AVITA Medical Inc (ASX: AVH)

It's a very different case for this ASX healthcare stock.

AVH shares are already down 67.15% year to date and Bell Potter anticipates a further slide.

The broker noted the CEO recently departed the company and soft revenue results are likely going to result in a substantial rationalisation program. 

AVH cannot continue to support the current cost base in the absence of sales growth and its ongoing ~$10m/qtr cash burn.

The broker said over the last three years the company has required ongoing re-capitalisation which is now unsustainable, resulting in further painful shareholder dilution.

The company issued a trading update on Friday, reporting September quarter revenues of approximately $17 million – down 12% compared to the prior corresponding period, 8% lower than the June quarter, and below the consensus estimate of $20 million.

Based on this guidance, Bell Potter has a sell recommendation and price target of $1.20 on these ASX healthcare shares. 

This indicates a downside of 12.4% from Friday's closing price of $1.37.

The post Broker lists one ASX healthcare stock as a buy and one a sell appeared first on The Motley Fool Australia.

In morning trade, AVITA Medical Inc (ASX: AVH) shares are up 11% to $1.49 after it made a big announcement.

Why is this ASX All Ords stock storming higher?

Investors have the regenerative medicine company's shares higher today after it revealed that it has received the CE Mark under the European Union's Medical Device Regulation for its RECELL GO device.

This means AVITA can now begin commercialising the product across Europe and in other markets that recognise the certification.

AVITA Medical's chief executive, Jim Corbett, was very pleased with the news and said the approval marked a turning point for the business. He commented:

CE Mark for RECELL GO is an important milestone for AVITA Medical and for patients. It enables us to bring this option to burn centers and clinicians in Europe to support their treatment of patients with acute wound injuries.

What does AVITA Medical do?

AVITA Medical is focused on therapeutic acute wound care. Its flagship product, the RECELL System, is designed to help heal burns and traumatic wounds by using a patient's own skin.

Its technology works by creating a suspension of skin cells, which are known as Spray-On Skin Cells, which can then be applied to damaged areas to speed up recovery.

The aforementioned RECELL GO product builds on this platform by making the process simpler and more efficient at the point of care. For doctors and nurses, that means faster preparation of the cell suspension, while for patients, it can mean shorter hospital stays and improved healing outcomes. Win-win!

The ASX All Ords stock also holds exclusive rights in the U.S. to distribute complementary wound care technologies such as PermeaDerm, a biosynthetic wound matrix, and Cohealyx, a collagen-based dermal matrix. Together, these products give AVITA a growing portfolio of solutions aimed at improving recovery and outcomes for patients with serious wounds.

Clinical backing

Today's release also highlights that evidence presented at the 2025 European Burns Association Congress demonstrated that patients treated with RECELL experienced a 36% reduction in hospital stays compared to traditional grafting.

For health systems, that translates into lower costs. For patients, it means less time in hospital and a quicker recovery.

With the CE Mark approval, in collaboration with burn centers and clinical partners, AVITA will now begin rolling out RECELL GO in key European countries including Germany, Italy, and the UK.

The post Guess which ASX All Ords stock is jumping 11% on 'important milestone' appeared first on The Motley Fool Australia.

The big gaining stock in question is Avita Medical Inc (ASX: AVH).

Shares in the therapeutic acute wound care company closed on Friday trading for $1.34. In earlier trade, shares leapt to $1.49 apiece, up 11.2%. At the time of writing, shares are swapping hands for $1.48 each, up 10.1%.

Here's what's stoking investor interest.

ASX All Ords healthcare share rockets on European greenlight

The Avita Medical share price is off to the races today after the company reported that it has received the CE mark under the European Union Medical Device Regulation (EU MDR) for RECELL GO.

That could provide a material revenue boost for the ASX All Ords healthcare share, with the company noting CE mark allows it to commercialise RECELL GO in Europe and in other markets that recognize the CE mark. RECELL GO builds on the RECELL System already in use across Europe.

If you're not familiar with RECELL GO, Avita explains that it's a point-of-care device used to prepare a suspension of a patient's own skin cells (Spray-On Skin Cells) from a small sample of healthy skin. The cells are then applied to promote healing in burns and wounds.

Commenting on the news sending the ASX All Ords healthcare share soaring today, Avita CEO Jim Corbett said:

CE mark for RECELL GO is an important milestone for Avita Medical and for patients. It enables us to bring this option to burn centres and clinicians in Europe to support their treatment of patients with acute wound injuries.

Avita said that with the CE mark secured, it will begin commercialisation of RECELL GO in select European countries in collaboration with burn centres and clinical partners. Those nations include Germany, Italy, and the United Kingdom.

Avita Medical share price snapshot

Today's big lift will come as welcome news to faithful Avita Medical shareholders, with shares still down 50% since this time last year.

The ASX All Ords healthcare share came under renewed selling pressure in August following a disappointing second-quarter update.

While showing improvement year on year, Avita still reported a net loss for the quarter of $9.9 million.

Commercial revenue of $18.4 million was up 21% from Q2 2024. But revenue fell short of analyst expectations of $22.5 million.

Corbet sounded a positive note, however. "The data tells the story: RECELL reduces hospital stays by 36%," he said at the time.

The post Guess which ASX All Ords healthcare share is jumping 11% on big European news appeared first on The Motley Fool Australia.

Three that have fared well and have been named as buys by the broker are listed below. Here's what it is saying about them:

AVITA Medical Inc (ASX: AVH)

Morgans remains positive on this commercial-stage regenerative medicine company despite its disappointing second quarter update. It said:

AVH's 2Q25 report was a significant miss versus expectations with no sales growth on the quarter as delays and complications continue to secure reimbursement from the regional Medicare contractors. As a result, AVH has made large downgrades to guidance, and pushed guidance around profitability to the middle of next year.

But it wasn't all bad news. There was one notable positive according to the broker. It adds:

However, one notable positive element in the results is that despite a significant shortfall in sales, AVH successfully rolled through cost-base reductions as planned, decreasing the net loss with more to come in 3Q. Nonetheless, another missed guidance target is unlikely to reassure investors, and it is now evident that additional capital will be necessary to support the company to profitability.

Morgans has a speculative buy rating and $2.00 price target on its shares.

Light & Wonder Inc (ASX: LNW)

This cross-platform games developer could be an ASX share to buy according to the broker.

While it delivered a mixed quarterly update, the broker remains positive. This is due to the "unsustainable" discount that its shares trade at compared to peers. It said:

Operationally, the result fell short on the top line, with land-based revenues impacted by competitor hardware refreshes, delayed operator spend following April tariff concerns, and continued softness in SciPlay. FY25 Adj-EBITDA guidance is now US$1.43-1.45bn, while NPATA guidance has been tightened to US$550-575m.

While we remain mindful of US-based volatility during the transition, we view the current valuation discount to peers as unsustainable in light of LNW's long-term growth aspirations, market share dynamics, and constructive industry feedback. We lower our FY25-26F EPSA forecasts by ~3% to reflect more conservative growth assumptions, updated guidance, and the expanded buy-back.

Morgans has put a buy rating and $175.00 price target on Light & Wonder's shares.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Finally, Morgans was impressed with this investment management company's full year results.

And while it acknowledges that its shares not cheap, it believes they are worth paying a premium to own. It said:

PNI delivered FY25 NPAT of A$134.4m, up 49% on pcp. Affiliate earnings grew 43% to A$129.7m and 39% to A$83m excluding performance fees (PF). Group FUM closed at A$179.4bn, +15.4% for the half (inflows A$16.4bn; performance A$7.6bn). 'Life Cycle' was the standout, with 2H inflows of ~A$14bn. PNI cycles a strong FY25 performance fee outcome, however earnings step-ups are coming through in Life Cycle, Metrics and potentially Five V. Medium-term 'embedded' drivers are visible from the scaling of several managers; and the long-term offshore opportunity is significant.

PNI is arguably expensive on near-term valuation multiples (susceptible to short-term volatility), however we see embedded strong growth medium term; the operating structure is now expanded to facilitate ongoing offshore growth; and near-term catalysts look supportive (solid flows outlook; acquisitions).

Morgans has an accumulate rating and $26.30 price target on its shares.

The post Morgans names 3 ASX shares to buy this week appeared first on The Motley Fool Australia.

The tumbling stock in question is Avita Medical Inc (ASX: AVH).

Shares in the regenerative medicine company closed yesterday trading for $1.725. In earlier trade, shares plunged to $1.330 apiece, down 22.9%. After some likely bargain hunting, shares are changing hands for $1.480 each at the time of writing, down 14.2%.

This follows on Avita Medical's second-quarter results (Q2 2025) for the three months ending 30 June.

Here's what has ASX investors favouring their sell buttons on Friday.

ASX All Ords stock tumbles on 2Q results

The Avita Medical share price is under heavy pressure today after the ASX All Ords stock reported second-quarter commercial revenue of $18.4 million. While that's up 21% from Q2 2024, it fell short of analyst expectations of $22.5 million in revenue.

It's a similar story with the company's improved, though still negative, earnings.

Avita reported a net loss for the quarter of $9.9 million. That equates to a loss of 38 cents per basic and diluted share. That compares favourably to the net loss of $15.4 million, or a loss of 60 cents per basic and diluted share, reported in Q2 2024.

But this also falls short of consensus expectations of an improvement to a net loss of 25 cents per share.

Also showing improvement were the ASX All Ords stock's operating expenses, which declined to $26.1 million in the quarter, down from $28.7 million in Q2 2024.

The company said the stiffest headwinds over the quarter came from a temporary gap in Medicare Administrative Contractor (MAC) payments to providers for the use of its RECELL System. This led to a weakening in demand.

Avita advised that multiple MACs initiated payments in July, with resolution expected in Q3.

What did management say?

Commenting on the results dragging on the ASX All Ords stock today, Avita Medical CEO Jim Corbett said, "Although the first half of 2025 tested our resilience and slowed our pace, a resolution is now underway, and our strategic direction hasn't changed."

Pointing to the company's core medical products, Corbet added:

The data tells the story: RECELL reduces hospital stays by 36%, Cohealyx achieves graft readiness in as little as five days. We're also grateful for CMS's support in expanding access to RECELL for Medicare beneficiaries with inpatient trauma wounds with the NTAP.

We're accelerating time to heal, time to recover, and time to deliver value, to patients and providers alike.

With today's big intraday fall factored in, shares in the ASX All Ords stock are now down 65% in 2025.

The post Guess which ASX All Ords stock just crashed 23% on earnings miss appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

AVITA Medical Inc (ASX: AVH)

The AVITA Medical share price is down 6% to $2.35. This appears to have been driven by a combination of weakness in the healthcare sector and a broker note out of Morgans. In respect to the latter, the broker has downgraded this medical device company's shares to a speculative buy rating (from add) and slashed the price target on them to $3.76 (from $4.36). The broker made the move in response to the company's quarterly update. It highlights that its costs were higher than expected, which meant a larger cash burn than forecast. As a result, it is starting to have concerns over the state of the company's balance sheet. Though, it is still positive on its longer term growth outlook.

Botanix Pharmaceuticals Ltd (ASX: BOT)

The Botanix Pharmaceuticals share price was down 16% to 39 cents before being paused from trade. It is unclear what has driven this decline. However, it is worth noting that US President Donald Trump plans to sign an executive order to cut American prescription prices to the level paid by other high-income countries. According to Reuters, Trump has suggested that this could mean cuts of 30% to 80%. Botanix's Sofdra 12.45% topical gel reportedly costs around US$1,043 for a supply of 40.2 millilitres.

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down 4% to 23 cents. This semiconductor company's shares have been very volatile recently and have been bouncing around. Though, the underlying trend has been down since the start of the year, with its shares down over 40% year to date. Investors appear to be doubting that there's ever going to be meaningful revenue generation after years of false dawns. In addition, let's not forget that Brainchip is competing with companies that could swallow them up for less than a monthly R&D budget if they really thought they were onto something with their products.

National Australia Bank Ltd (ASX: NAB)

The NAB share price is down 2.5% to $35.58. This has been driven by the banking giant's shares going ex-dividend this morning. When a share trades ex-dividend, it means the rights to an upcoming dividend payment are settled and new buyers won't be entitled to receive it on pay day. As a result, a share price tends to drop to reflect this. Last week, NAB declared a fully franked 85 cents per share. This will be paid to eligible shareholders on 2 July.

The post Why AVITA, Botanix, Brainchip, and NAB shares are falling today appeared first on The Motley Fool Australia.

The outperforming stock in question is Avita Medical Inc (ASX: AVH).

Shares in the regenerative medicine company closed yesterday trading for $2.70. In morning trade on Tuesday, shares just leapt to $2.94 apiece, up 8.9%. After some likely profit-taking, shares are changing hands for $2.88 each at the time of writing, up 6.7%.

That leaves shares in the ASX All Ords stock down 31% in 2025.

Here's what's grabbing investor attention today.

ASX All Ords stock surges on US agreements

The Avita Medical share price is charging higher today after the company announced it has entered into a new contract manufacturing agreement with Stedical Scientific, a United States-based company, for its PermeaDerm transparent biosynthetic wound matrix.

PermeaDerm is cleared by the US Food and Drug Administration (FDA) for use in the treatment of a variety of wound types until healing is achieved.

The ASX All Ords stock also inked an amendment to its existing exclusive distribution agreement with Stedical Scientific.

Avita said the agreements will further strengthen the strategic relationship between the two companies to expand the reach and availability of PermeaDerm.

Under the new contract manufacturing agreement, which came into effect overnight, Avita Medial will manufacture PermeaDerm at Stedical Scientific's manufacturing facility in Ventura, California.

Avita Medical said it will make use of its existing infrastructure to drive the ongoing commercialisation of PermeaDerm in the US. The new agreement will also help streamline production, increase scale, and optimise manufacturing cost efficiencies to drive greater value.

The amended distribution agreement extends the contract term and modifies the revenue-sharing terms. Under the new terms, the ASX All Ords stock will retain 60% of the average sales price from PermeaDerm sales. Under the previous agreement, Avita Medical retained 50% of the average sales price.

What did management say?

Commenting on the new agreements helping to lift the ASX All Ords stock today, Avita Medical CEO Jim Corbett said:

These strategic agreements reflect our shared commitment to driving innovation and expanding market access, while ensuring that patients continue to receive first-in-class care. We look forward to leveraging our expertise to continue to drive innovation and growth in therapeutic acute wound care.

Lin Sun, chairman of Stedical Scientific, added:

PermeaDerm has demonstrated great healing results when used for various wounds. We are excited to expand our collaboration with Avita Medical through this manufacturing agreement.

This partnership ensures a robust supply chain for PermeaDerm and strengthens our commitment to delivering cutting-edge solutions to the global market.

The post Guess which ASX All Ords stock just leapt 9% on big US news appeared first on The Motley Fool Australia.

Two ASX All Ords shares that have released strong full year results today are listed below. Let's see what they reported:

AVITA Medical Inc (ASX: AVH)

The AVITA Medical share price is up 10% to $3.05.

This morning, the medical device company released its fourth quarter and full year results.

The ASX All Ords share reported a 30% increase in commercial revenue to US$18.4 million for the fourth quarter. This took commercial revenue to US$64 million for the full year, which is an increase of approximately 29% compared to the same period a year ago.

Its fourth quarter gross margin came in at 87.6%, which lifted its full year gross profit margin to 85.8%.

However, this couldn't stop the company from reporting a net loss of US$61.8 million for the year. This is up from US$35.4 million in FY 2023. Management advised that the increase in net loss was driven by the higher operating expenses and lower other income.

Looking ahead, commercial revenue is expected to increase to the range of US$100 million to US$106 million in FY 2025. This reflects growth of approximately 55% to 65%.

Pleasingly, the days of heavy losses appear to be nearly over. Management expects to generate free cash flow in the second half of FY 2025 and reach GAAP profitability during the fourth quarter.

GQG Partners Inc (ASX: GQG)

The GQG Partners share price is up over 5% to $2.50.

Investors have been buying the investment company's shares after it delivered strong profit growth in FY 2024.

For the 12 months ended 31 December, the ASX All Ords share posted a 46.9% increase in net revenue to US$760.4 million and a 50.4% jump in distributable earnings to US$447.9 million.

This allowed the ASX All Ords share to boost its total dividends by 50.2% to 13.67 US cents per share. This includes a final quarterly dividend of 3.78 US cents per share.

Commenting on the result, the company's CEO and executive director, Tim Carver, said:

We are pleased to announce our financial results. For the year ended December 31, 2024, GQG experienced net inflows of US$20.2 billion, nearly double our net flows of $10.2 billion from 2023. We ended the year with US$153.0 billion in funds under management, which reflects both net flows and investment performance, an increase of 26.9% from the end of 2023.

The growth in FUM reflects strong performance from our investment team and another great effort from our business team. The increase in FUM led to net revenue growth of 46.9% to US$760.4 million during 2024. Net operating income increased 50.4% to US$577.9 million during the same period, reflecting an increase in average funds under management partially offset by an increase in expenses as GQG continues to invest in talent and overall business activities.

The post 2 ASX All Ords shares soaring on strong full year results appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are sinking:

AVITA Medical Inc (ASX: AVH)

The AVITA Medical share price is down a further 12% to $3.10. This regenerative medicine company's shares have been sold off this week after it downgraded its guidance for FY 2024. Due to a softer than expected performance in the fourth quarter, the wound care management and skin restoration device seller's commercial revenue is expected to be approximately US$64.3 million for FY 2024. This compares to its guidance for commercial revenue of US$68 million to US$70 million. AVITA Medical CEO Jim Corbett said: "We remain confident in our long-term growth trajectory as we continue to scale our business. Our strategic investments in our people and new products position us to continue to drive significant growth and sustainable success."

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price is down 9% to $27.10. This may have been driven by a couple of broker downgrades this week impacting the fashion jewellery retailer's shares. As we covered here, the team at UBS downgraded its rating on Lovisa to sell with a $27.00 price target. It said: "Given the downside risk to consensus earnings estimates and reduced valuation support, the risk-reward is no longer compelling." Elsewhere, fellow broker Jefferies has downgraded its recommendation from buy to hold.

Star Entertainment Group Ltd (ASX: SGR)

The Star share price is down 23% to 15 cents. Investors have been selling the embattled casino and resorts operator's shares after it released an update on its cash position. The company revealed that its available cash at 31 December 2024 was $79 million. This is a reduction of $70 million from its balance of $149 million at the end of September. It is now trying to find a way to meet conditions precedent to draw down $100 million from a debt facility. However, it admits that "conditions remain challenging to meet given the Group's current circumstances."

Westgold Resources Ltd (ASX: WGX)

The Westgold Resources share price is down 9% to $2.67. This has been driven by the release of the gold miner's quarterly update this morning. Westgold reported production of 80,886 ounces of gold in the second quarter of FY 2025, up from 77,369 ounces in the first quarter. This brings its half year production to 158,255 ounces of gold, which means a significant improvement will be required to meet its full year guidance of 400,000 ounces to 420,000 ounces. It seems that some investors are doubtful that it will deliver on its target.

The post Why AVITA Medical, Lovisa, Star, and Westgold shares are sinking today appeared first on The Motley Fool Australia.

Four ASX shares that have failed to rise with the market today are listed below. Here's why they are falling:

AVITA Medical Inc (ASX: AVH)

The AVITA Medical share price is down almost 19% to $3.54. Investors have been selling this regenerative medicine company's shares after it downgraded its guidance for FY 2024. Due to a softer than expected performance in the fourth quarter, the wound care management and skin restoration device seller's commercial revenue is expected to be approximately US$64.3 million for FY 2024. While this is up 29% over FY 2023, it was previously guiding to commercial revenue of US$68 million to US$70 million. AVITA Medical CEO Jim Corbett said: "We remain confident in our long-term growth trajectory as we continue to scale our business. Our strategic investments in our people and new products position us to continue to drive significant growth and sustainable success."

Block Inc (ASX: SQ2)

The Block Inc share price is down 3.5% to $142.64. This follows a poor night of trade for the payment giant's US listed shares on Tuesday. Investors were selling tech stocks after treasury yields increased. This led to the Nasdaq index losing 1.9% of its value during the session. Locally, the S&P/ASX All Technology Index is down almost 1% at the time of writing.

Computershare Ltd (ASX: CPU)

The Computershare share price is down over 1% to $34.69. Investors have been selling this stock transfer company's shares after it was downgraded by a leading broker. According to a note out of UBS, the broker has downgraded Computershare's shares to a neutral rating (from buy) but increased its price target by 13% to $36.15. This implies modest potential upside of approximately 4% for investors over the next 12 months, which is not enough for UBS to maintain its buy recommendation.

GQG Partners Inc (ASX: GQG)

The GQG Partners share price is down 3.5% to $2.09. This fund manager's shares have come under pressure on Wednesday after it released its latest funds under management (FUM) update. The release reveals that GQG Partners ended 2024 with FUM of US$153 billion. While this is up approximately 27% year on year, it has fallen 4.1% since the end of November. This reflects net outflows of US$200 million and a negative investment performance.

The post Why AVITA Medical, Block, Computershare, and GQG Partners shares are falling today appeared first on The Motley Fool Australia.

In morning trade, the ASX All Ords stock is down 17% to $3.62.

Why is this ASX All Ords stock down 17%?

This commercial-stage regenerative medicine company's shares are being sold off this morning after it revealed a softer-than-expected finish to FY 2024.

According to the release, demand for its wound care management and skin restoration devices was below expectations in the fourth quarter. As a result, it now expects commercial revenue to be approximately US$18.4 million for the three months.

While this represents growth of around 30% over the prior corresponding period, it is short of its fourth-quarter guidance range of US$22.3 million to US$24.3 million.

As a result, its revenue in FY 2024 is also going to be short of guidance. Management expects its full year commercial revenue to be approximately US$64.3 million, reflecting growth of about 29% over FY 2023.

Whereas it previously provided FY 2024 revenue guidance of US$68 million to US$70 million.

What went wrong?

The ASX All Ords stock revealed that its guidance miss reflects a combination of factors.

However, slower-than-expected purchasing activity is the primary driver. It notes that several of the company's hospital accounts adjusted their inventory levels at the end of their fiscal year, resulting in reduced purchasing during December.

And while this type of behaviour is common at year-end, the extent was more pronounced than AVITA Medical had anticipated, contributing to less revenue in the quarter.

The good news is that the ASX All Ords stock is expecting normal purchasing activity for these accounts to resume in the first quarter, with deferred purchases from the fourth quarter rolling over.

Commenting on the full year, AVITA Medical CEO Jim Corbett said:

We grew our revenue in 2024 by approximately 29% over the prior year. We achieved this growth despite lower-than-expected fourth-quarter revenue.

We remain confident in our long-term growth trajectory as we continue to scale our business. Our strategic investments in our people and new products position us to continue to drive significant growth and sustainable success. We are focused on executing our plan, delivering value to our shareholders, and improving patient outcomes.

Looking ahead, the company is guiding to commercial revenue in the range of US$100 million to US$106 million in FY 2025. This reflects growth of approximately 55% to 65% over the projected FY 2024 commercial revenue.

Though, it now expects to achieve cash flow break-even and GAAP profitability in the fourth quarter of 2025, instead of the third quarter of 2025.

The post Why did this ASX All Ords stock just crash 17%? appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

AVITA Medical Inc (ASX: AVH)

The AVITA Medical Inc share price is down 2% to $4.28. This may have been driven by profit taking from some investors after strong gains in recent sessions. For example, the company's shares remain up 14% since this time last week despite today's decline. The catalyst for this has been news that the United States Food and Drug Administration (FDA) gave the thumbs up to its premarket approval (PMA) supplement for RECELL GO mini. AVITA CEO, Jim Corbett, said: "The FDA approval of RECELL GO mini strengthens our ability to provide clinicians with fit-for-purpose solutions that meet the diverse needs of patients with full-thickness wounds. By introducing a treatment option specifically for smaller wounds, we are expanding the accessibility of RECELL to a wider range of patients."

Life360 Inc (ASX: 360)

The Life360 share price is down 3% to $22.40. This follows a poor night of trade for tech stocks on Wall Street on Monday. It isn't just Life360 shares that are falling today, the tech sector is largely a sea of red. So much so, the S&P/ASX All Technology Index is down by around 1% at the time of writing.

Newmont Corporation (ASX: NEM)

The Newmont Corporation share price is down over 2% to $59.40. This follows a decline from the gold giant's shares on the New York Stock Exchange overnight after the gold price softened. This has led to the S&P/ASX All Ordinaries Gold index dropping 1.2% on Tuesday.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is down 4% to 22.5 cents. This gold miner's shares have been sold off this month after it was hit with a huge tax bill in Papua New Guinea. The country's Internal Revenue Commission (IRC) delivered correspondence to St Barbara's tax agent containing details of additional taxes, inclusive of a 200% penalty imposition, that amount to PGK 523 million. This is the equivalent of approximately A$210 million. St Barbara's CEO, Andrew Strelein, said "The receipt of this IRC Amended Assessment, backdating changes to 2008 and earlier, just as IRC were closing down its office for Christmas was disappointing – particularly when such positive progress has been made with Mineral Resources Authority and with Kumul Minerals Holdings Limited on the development of the Simberi Sulphides."

The post Why AVITA Medical, Life360, Newmont, and St Barbara shares are falling today appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are climbing:

AVITA Medical Inc (ASX: AVH)

The AVITA Medical share price is up 5% to $4.00. Investors have been buying this regenerative medicine company's shares after the United States Food and Drug Administration (FDA) approved its premarket approval (PMA) supplement for RECELL GO mini. AVITA CEO, Jim Corbett, said: "The FDA approval of RECELL GO mini strengthens our ability to provide clinicians with fit-for-purpose solutions that meet the diverse needs of patients with full-thickness wounds. By introducing a treatment option specifically for smaller wounds, we are expanding the accessibility of RECELL to a wider range of patients."

GenusPlus Group Ltd (ASX: GNP)

The GenusPlus Group share price is up 4% to $2.55. This follows news that the essential services provider has won another big contract. According to the release, GenusPlus has been awarded a contract for Stage 1 of TasNetworks' North West Transmission Developments (NWTD) project. The company notes that the staged contract commences with the award of the early contractor involvement phase of NWTD Stage 1 which is worth approximately $42 million to GenusPlus.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is up 1.5% to $2.57. This biotechnology company's shares have been on fire this week after announcing some big news. Mesoblast revealed that the US FDA has approved its Ryoncil (remestemcel-L) product as the first mesenchymal stromal cell (MSC) therapy in the United States. It notes that Ryoncil is the only MSC therapy approved in the U.S. for any indication. It is also the only approved therapy for steroid-refractory acute graft versus host disease (SR-aGvHD) in children 2 months and older, including adolescents and teenagers.

Polynovo Ltd (ASX: PNV)

The Polynovo share price is up a further 1.5% to $2.09. This medical device company's shares have been pushing higher this week after it released a trading update. That trading update revealed that the company achieved its first $10 million sales month in November. This means that year to date, Polynovo's revenue is now $49.6 million. This is an increase of $10.1 million or 25.4% on the prior corresponding period.

The post Why Avita Medical, GenusPlus, Mesoblast, and Polynovo shares are storming higher appeared first on The Motley Fool Australia.

In morning trade, the ASX healthcare stock is up over 7% to $4.10.

Why is this ASX healthcare stock jumping?

Investors have been buying the regenerative medicine company's shares after it made a big announcement.

According to the release, the United States Food and Drug Administration (FDA) has approved its premarket approval (PMA) supplement for RECELL GO mini.

The company notes that as a line extension of the existing RECELL GO system, the RECELL GO mini disposable cartridge is designed specifically to treat smaller wounds up to 480 square centimetres. This compares to the standard RECELL GO disposable cartridge, which treats an area of 1,920 square centimetres.

Why the mini version?

Management points out that RECELL GO mini addresses a critical need in the full-thickness skin defect market, which includes a high volume of smaller wounds.

As part of the RECELL GO platform, RECELL GO mini uses the same multi-use processing device as the standard disposable cartridge. However, it features a modified cartridge that is optimised for smaller skin samples. This reduces resource use and minimises waste.

The company feels that this design provides an entry point for clinicians who may not have previously used the RECELL GO platform for smaller wounds, enabling broader accessibility and use in trauma and burn centres.

The ASX healthcare stock's CEO, Jim Corbett, was pleased with the news. He said:

The FDA approval of RECELL GO mini strengthens our ability to provide clinicians with fit-for-purpose solutions that meet the diverse needs of patients with full-thickness wounds. By introducing a treatment option specifically for smaller wounds, we are expanding the accessibility of RECELL to a wider range of patients. We believe this addition will drive greater adoption across trauma centers, where smaller wounds are common, and support our broader growth strategy.

What's next?

The company notes that it expects RECELL GO mini to serve as a growth driver within the broader RECELL GO platform, further advancing the ASX healthcare stock's strategy to expand its impact on patient care.

Its rollout will begin with trauma and burn centres that currently treat smaller wounds during the first quarter of 2025.

Following today's gain, this ASX healthcare stock is now trading largely flat year to date. Though, it remains down by a sizeable 65% over the past five years.

The post Guess which ASX healthcare stock is jumping 7% on US FDA approval news appeared first on The Motley Fool Australia.

Here's what you need to know about these shares from the small side of the market:

AVITA Medical Inc (ASX: AVH)

The first small cap ASX share that could be a buy is AVITA Medical. It is a regenerative medicine company with a focus on wound care management and skin restoration with its RECELL technology.

The company notes that RECELL harnesses the regenerative properties of a patient's own skin to create spray-on skin cells, delivering a transformative solution at the point-of-care. Management believes its technology serves as the catalyst for a new treatment paradigm enabling improved clinical outcomes.

Morgans is very positive on the company. This is partly due to the company recently expanding its "indication into full thickness skin defects and Vitiligo (US$5bn TAM)." It also thinks that its automated device RECELL Go "will be a meaningful driver of rapid adoption by clinicians."

The broker has an add rating and $4.56 price target on its shares.

Bluebet Holdings Ltd (ASX: BBT)

A second small cap ASX share that could be a buy is Bluebet. It is a sports betting company which recently completed a merger with betr.

Morgans is also positive on the company and believes its shares are undervalued at current levels. Particularly given its recent quarterly update, which it notes saw Bluebet report a "strong performance despite not yet fully benefiting from the impact of the betr migration."

In addition, it highlights that its net win margin of 9.7% exceeded the market's and its own expectations. And, "impressively, the margin reflects the company's rapid success in monetising betr's customer base within a short timeframe."

Morgans currently has an add rating and 33 cents price target on its shares.

Readytech Holdings Ltd (ASX: RDY)

Another small cap ASX share that has been named as a buy is Readytech.

It is a technology company that owns a portfolio of enterprise software businesses across several market verticals. This includes higher education and local government.

Goldman Sachs is a fan of the company. It likes Readytech due to its growing levels of recurring revenue and low churn levels. The broker expects this to help the company "continue to grow mid-teens organically while making accretive acquisitions."

The broker currently has a buy rating and $4.25 price target on its shares.

The post 3 exciting small cap ASX shares to buy in November appeared first on The Motley Fool Australia.

That's because they were recently named as buys by brokers and tipped to rise strongly from current levels. Here's what you need to know about them:

AVITA Medical Inc (ASX: AVH)

The team at Morgans thinks that this regenerative medicine company could be a small cap ASX share to buy right now.

The broker currently has a buy rating and $4.56 price target on its shares. This suggests that upside of 45% is possible for investors over the next 12 months.

Morgans rates the company highly. It highlights that its Recell wound repair product has a huge growth opportunity. It explains:

AVH is a regenerative medicine company focusing on the acute wound care market. It has recently expanded its indication into full thickness skin defects and Vitiligo (US$5bn TAM). The expanded indication in full thickness skin defects has the required reimbursement in place and sales have started.

Camplify Holdings Ltd (ASX: CHL)

Another ASX small cap share to look at is Camplify. It is a leading peer-to-peer digital marketplace platform operator connecting recreational vehicle (RV) owners with hirers.

Morgans is a fan of the company and has an add rating and $2.55 price target on its shares. This suggests that they could more than double in value from current levels.

The broker highlights the company's positive long term growth outlook. This is thanks to opportunity both at home and internationally. It said:

We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.

SRG Global Ltd (ASX: SRG)

Bell Potter says that SRG Global could be a top small cap ASX share  for investors to buy.

The broker has a buy rating and $1.40 price target on its shares. This implies potential upside of 25% over the next 12 months.

It highlights that this diversified industrial services company has a strong growth potential yet trades on lower than average earnings multiples. It said:

SRG's short-to-medium term outlook is reinforced by Government-stimulated construction activity in the infrastructure and non-residential sectors, and increased development and sustained capital expenditures in the resources industry. SRG is expected to generate double digit earnings growth (11% p.a. over (FY25-27)) on a 12 mth fwd P/E of ~12x.

The post These small cap ASX shares could rise 25% to 100% appeared first on The Motley Fool Australia.

And while Australian interest rates may not be heading lower until next year, it could pay for investors to get in early with small caps.

But which small cap ASX shares could be buys before interest rates fall? Let's take a look at a couple that analysts at Bell Potter and Morgans rate highly today. They are as follows:

Aeris Resources Ltd (ASX: AIS)

The team at Bell Potter thinks that investors should be buying copper miner Aeris Resources.

Particularly given the bullish outlook for the base metal. Its analysts have a buy rating and 27 cents price target on the small cap ASX share. This implies potential upside of 17% for investors from current levels.

It likes Aeris Resources due to its strategically attractive Tritton asset. It explains:

AIS is a copper dominant producer with all its assets in Australia. Its near-term outlook is highly leveraged to the copper price and increasing grades and production at the Tritton copper mine. Successful delivery offers significant upside and a strategically attractive asset in Tritton, making AIS vulnerable as a corporate target. Retain Buy.

AVITA Medical Inc (ASX: AVH)

Analysts at Morgans think that this commercial-stage regenerative medicine company could be a small cap ASX share to buy right now.

Last month, the broker put a buy rating and $4.56 price target on its shares. This suggests that upside of 50% is possible for investors over the next 12 months from current levels.

Morgans rates the company highly. This is due largely to its Recell product, which the broker believes has a huge growth opportunity thanks to its expanded indication. It recently said:

AVH is a regenerative medicine company focusing on the acute wound care market. It has recently expanded its indication into full thickness skin defects and Vitiligo (US$5bn TAM). The expanded indication in full thickness skin defects has the required reimbursement in place and sales have started. AVH has provided revenue guidance for FY24 of growth of ~64% [now 40% to 48%] importantly has guided to achieving profitability by 3QCY25. At the same time, the company is seeking approval [now has been approved] by the FDA for its automated device RECELL Go, which if successful will launch 1 June 2024, and will be a meaningful driver of rapid adoption by clinicians.

The post Buy these small cap ASX shares before interest rates fall appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are pushing higher:

AVITA Medical Inc (ASX: AVH)

The AVITA Medical share price is up almost 10% to $2.96. This appears to have been driven by the release of a broker note out of Bell Potter. According to the note, the broker has upgraded the regenerative medicine company's shares to a speculative buy rating with an improved price target of $3.60. This follows the release of a quarterly update that impressed the broker and showed all metrics heading in the right direction. Avita's quarterly revenue increased strongly and its losses reduced nicely. Another highlight was that the company has made good progress in respect to its growing footprint, with a large number of hospital accounts opened in the quarter and even more in negotiations. And with management guiding to more strong revenue growth in the third quarter, Bell Potter is feeling upbeat.

CAR Group Limited (ASX: CAR)

The CAR Group share price is up 5% to $35.31. This follows the release of the auto listings company's full year results. The carsales.com.au operator reported a 41% increase in revenue to $1.1 billion but a sharp decline in profit to $250 million. However, its 61% year on year decrease in profits was due to the recognition of a $487 million gain on its acquisition of Trader Interactive and webmotors. Adjusted net profit was up 24% to $344 million. Looking ahead, management expects to deliver "good growth" in revenue and profits in FY 2025 in constant currency.

Dicker Data Ltd (ASX: DDR)

The Dicker Data share price is up 5.5% to $10.33. This morning, this computer hardware and software wholesaler announced its latest quarterly dividend. Dicker Data has declared an 11 cents per share fully franked dividend, which is up 10% on the prior corresponding period. Its shares will go ex-dividend on 15 August. After which, it has a pay date of 2 September. Investors may be interpreting this dividend increase as a sign that the company is performing strongly.

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is up 8% to $72.61. This follows the release of the retail giant's full year results this morning. Although JB Hi-Fi posted a 0.4% decline in sales to $9.59 billion and a 16.4% decline in net profit to $438.8 million, this was ahead of the market's expectations. Also getting investors excited was news of an acquisition, a special dividend, and a strong start to FY 2025. Total sales for JB Hi-Fi Australia were up 5.6% in July.

The post Why Avita Medical, Car Group, Dicker Data, and JB Hi-Fi shares are soaring today appeared first on The Motley Fool Australia.