Elanco Animal Health projects earnings growth through 2028
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 12 2024
0mins
Should l Buy ELAN?
Elanco Animal Health Inc's stock declined by 3.83% and hit a 20-day low amid broader market gains.
The company recently provided earnings forecasts for the years 2026 to 2028, anticipating low double-digit adjusted earnings per share. This announcement may influence investor sentiment and stock performance in the animal health sector.
Investors will be closely monitoring Elanco's performance as it navigates through market challenges, especially in light of its projections and the overall market conditions.
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Analyst Views on ELAN
Wall Street analysts forecast ELAN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ELAN is 25.50 USD with a low forecast of 22.00 USD and a high forecast of 30.00 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.
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 24.310
Low
22.00
Averages
25.50
High
30.00
Current: 24.310
Low
22.00
Averages
25.50
High
30.00
About ELAN
Elanco Animal Health Incorporated is an animal health company delivering products and services to prevent and treat disease in farm animals and pets. The Company's product portfolio is sold in more than 90 countries and serves animals across many species, primarily dogs and cats (collectively, pet health) and cattle, poultry, swine, and sheep (collectively, farm animal). It has a diverse portfolio of products marketed under approximately 200 brands, including products for both pets and farm animals. The Company's global pet health portfolio is focused on parasiticides, vaccines and therapeutics. Its pet health products include Advantage Family, Atopica, Credelio Family, Drontal Family, Galliprant, Interceptor Plus, Milbemax, Onsior, Seresto, Trifexis, and TruCan. Its farm animal products include AviPro, Baytril, Catosal, Denagard, Experior, Hemicell, Maxiban/Monteban, Pulmotil, Rumensin, and Surmax. Its customers include consultants, veterinarians, farm animal producers and resellers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Elanco Animal Health Adjusts Price Target Amid New Product Launches
- Price Target Increase: Elanco Animal Health's fair value estimate has been raised from $24.17 to $25.92 per share, a modest adjustment that reflects new research insights into its product pipeline and revenue efforts, indicating the company's stability in the market.
- Product Launch Support: KeyBanc upgraded Elanco to Overweight with a price target of $27, emphasizing the potential of recent product launches to drive revenue growth and margins, while also noting the reduction in leverage that could enhance future cash flows.
- FDA Approval for New Drug: Elanco received conditional FDA approval for Credelio Quattro CA1 chewable tablets, the first companion animal product targeting New World screwworm infestations, expected to launch in 2026, further enriching its product line in canine dermatology.
- Operational Restructuring Plan: Under the Elanco Ascend productivity initiative, the company plans to expand its R&D organization in Indianapolis and close a facility in Germany, aiming to save approximately $60 million by 2027, demonstrating its commitment to optimizing operations and cost control.
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- GDP Revision Upward: Q3 GDP was revised upward to an annualized growth rate of 4.4%, surpassing expectations of 4.3%, suggesting robust economic momentum that may encourage investor optimism about future economic prospects.
- Natural Gas Price Surge: Natural gas prices increased by over 12% to a three-year high due to an Arctic cold front raising heating demand, which boosts related stocks and highlights volatility and investment opportunities in the energy market.
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US Stocks Rise with Nasdaq Up 0.83% Amid Economic Optimism
- Positive Economic Data: Initial jobless claims rose by 1,000 to 200,000, lower than the expected 209,000, indicating resilience in the labor market and boosting investor confidence in economic recovery.
- GDP Revision Upward: Q3 GDP growth was revised up by 0.1 percentage points to 4.4%, exceeding the market expectation of 4.3%, suggesting strong economic momentum that could drive further stock market gains.
- Surge in Natural Gas Prices: Natural gas prices increased by over 8%, reaching a three-year high due to a cold front raising heating demand, which is expected to positively impact natural gas producers and boost related stocks.
- Strong Performance in Tech Stocks: Chipmakers and AI infrastructure stocks led the rally, with ARM Holdings and Microchip Technology rising over 5% and 3% respectively, reflecting strong market demand for tech stocks and potentially significant returns for investors.
See More
Piper Sandler Upgrades Elanco Animal Health (ELAN) to Overweight with $30 Price Target
- Market Position Improvement: Piper Sandler upgraded Elanco Animal Health from neutral to overweight, indicating significant inroads in corporate accounts that are expected to drive further market share growth for the company.
- Price Target Adjustment: The analyst raised Elanco's price target from $24 to $30, reflecting an approximately 23% upside, showcasing market optimism regarding its future performance.
- Zoetis Downgrade: In contrast, Zoetis was downgraded to neutral with a price target cut from $190 to $135, indicating that the current consumer spending environment poses challenges for its business, with only an 8% upside potential.
- Innovation Cycle Impact: Analysts noted that while Zoetis has the best portfolio in animal health Rx, it is facing an innovation air pocket that could last one to two years, potentially affecting its short-term growth outlook.
See More
Elanco Animal Health Adjusts Price Target Amid New Product Launches
- Price Target Increase: Elanco Animal Health's fair value estimate has been raised from $24.17 to $25.92 per share, a modest adjustment that reflects new research insights into its product pipeline and revenue efforts, indicating the company's stability in the market.
- Product Launch Support: KeyBanc upgraded Elanco to Overweight with a price target of $27, emphasizing the potential of recent product launches to drive revenue growth and margins, while also noting the reduction in leverage that could enhance future cash flows.
- FDA Approval for New Drug: Elanco received conditional FDA approval for Credelio Quattro CA1 chewable tablets, the first companion animal product targeting New World screwworm infestations, expected to launch in 2026, further enriching its product line in canine dermatology.
- Operational Restructuring Plan: Under the Elanco Ascend productivity initiative, the company plans to expand its R&D organization in Indianapolis and close a facility in Germany, aiming to save approximately $60 million by 2027, demonstrating its commitment to optimizing operations and cost control.
See More
Gold and Silver Aren't the Sole Hot Commodities: Explore Agricultural Stocks.
Focus on Soft Commodities: The article emphasizes the importance of paying attention to soft commodities, which are often overshadowed by the rally in hard commodities like gold and silver.
Market Dynamics: It suggests that the current market dynamics warrant a closer look at soft commodities, as they may present significant investment opportunities.
See More
US Stocks Rise with Nasdaq Up 0.76% Amid Economic Optimism
- Positive Economic Data: Weekly initial jobless claims rose by 1,000 to 200,000, beating expectations of 209,000, indicating labor market resilience and boosting investor confidence in economic recovery.
- GDP Revision Upward: Q3 GDP growth was revised up by 0.1% to an annualized rate of 4.4%, surpassing the expected 4.3%, suggesting strong economic momentum that could further propel stock market gains.
- Surge in Natural Gas Prices: Natural gas prices rose over 3% to a three-year high due to an Arctic cold front increasing heating demand, which is expected to boost related stocks and invigorate the market.
- Strong Performance in Tech Stocks: The Magnificent Seven tech stocks saw significant gains, with Meta and Tesla rising over 5% and 4% respectively, reflecting strong market confidence in technology stocks that may lead the overall market higher.
See More
S&P 500, Dow, and Nasdaq Rise on Strong Economic Data and Market Rally
- Strong Economic Data: Weekly initial unemployment claims rose by 1,000 to 200,000, beating expectations of 209,000, indicating labor market resilience and boosting market confidence, which contributed to stock market gains.
- GDP Revision Upward: Q3 GDP was revised upward to an annualized growth rate of 4.4%, surpassing expectations of 4.3%, suggesting robust economic momentum that may encourage investor optimism about future economic prospects.
- Natural Gas Price Surge: Natural gas prices increased by over 12% to a three-year high due to an Arctic cold front raising heating demand, which boosts related stocks and highlights volatility and investment opportunities in the energy market.
- Tech Stocks Lead Gains: The Magnificent Seven tech stocks, including Meta, Amazon, and Tesla, saw significant gains, driving the overall market higher and reflecting sustained investor confidence and growth potential in the technology sector.
See More
US Stocks Rise with Nasdaq Up 0.83% Amid Economic Optimism
- Positive Economic Data: Initial jobless claims rose by 1,000 to 200,000, lower than the expected 209,000, indicating resilience in the labor market and boosting investor confidence in economic recovery.
- GDP Revision Upward: Q3 GDP growth was revised up by 0.1 percentage points to 4.4%, exceeding the market expectation of 4.3%, suggesting strong economic momentum that could drive further stock market gains.
- Surge in Natural Gas Prices: Natural gas prices increased by over 8%, reaching a three-year high due to a cold front raising heating demand, which is expected to positively impact natural gas producers and boost related stocks.
- Strong Performance in Tech Stocks: Chipmakers and AI infrastructure stocks led the rally, with ARM Holdings and Microchip Technology rising over 5% and 3% respectively, reflecting strong market demand for tech stocks and potentially significant returns for investors.
See More
Piper Sandler Upgrades Elanco Animal Health (ELAN) to Overweight with $30 Price Target
- Market Position Improvement: Piper Sandler upgraded Elanco Animal Health from neutral to overweight, indicating significant inroads in corporate accounts that are expected to drive further market share growth for the company.
- Price Target Adjustment: The analyst raised Elanco's price target from $24 to $30, reflecting an approximately 23% upside, showcasing market optimism regarding its future performance.
- Zoetis Downgrade: In contrast, Zoetis was downgraded to neutral with a price target cut from $190 to $135, indicating that the current consumer spending environment poses challenges for its business, with only an 8% upside potential.
- Innovation Cycle Impact: Analysts noted that while Zoetis has the best portfolio in animal health Rx, it is facing an innovation air pocket that could last one to two years, potentially affecting its short-term growth outlook.
See More
