11 High Growth Micro-cap Stocks to Buy

3. AVITA Medical, Inc. (NASDAQ:RCEL)

Number of Hedge Fund Holders: 6

Market Capitalization: $101.35 million

5-year Revenue Growth: 63.43%

On January 16, Lake Street raised its price target on AVITA Medical, Inc. (NASDAQ:RCEL) to $3.50 from $3 while maintaining a Hold rating, citing the company’s recent debt refinancing as a critical step in alleviating near-term liquidity concerns. The analyst noted that upcoming full Q4 results, along with clearer commentary on reimbursement trends, could serve as important catalysts for investor confidence, though the firm prefers to see further evidence of business stabilization before adopting a more constructive stance.

Looking ahead, AVITA Medical, Inc. (NASDAQ:RCEL) has outlined a more encouraging growth profile, guiding for FY26 revenue of $80 million to $85 million, compared with $71.6 million in FY24. Management has emphasized that the past year was focused on strengthening the company’s foundation by stabilizing revenue, advancing the clinical pipeline, and improving financial flexibility. With these building blocks now in place, Avita expects to transition into a phase of execution-led growth, supported by a healthier balance sheet and upcoming clinical and commercial milestones.

AVITA Medical, Inc. (NASDAQ:RCEL) is a regenerative medicine company developing and commercializing innovative therapeutic solutions, with a focus on improving outcomes in complex wound and tissue repair. Founded in 1999 and headquartered in Santa Clarita, California, the company enters 2026 with an improved financial footing and a clearer path toward more predictable, scalable performance as it works to convert stabilization efforts into sustained growth.