Morgan Stanley analyst Erin Wright has maintained their neutral stance on ELAN stock, giving a Hold rating yesterday.
Erin Wright has given his Hold rating due to a combination of factors impacting Elanco Animal Health’s financial outlook. The company’s fourth-quarter earnings per share (EPS) of $0.14 fell slightly below expectations, and while revenue showed strength, it was offset by lower profitability. The updated guidance for 2025 indicates an EPS range of $0.80 to $0.86, which is below both Morgan Stanley’s and the consensus estimates of $0.89.
Additionally, Elanco’s EBITDA projections for 2025 are lower than anticipated, factoring in foreign exchange headwinds. The company has also adjusted its net leverage target, reflecting these FX impacts. Although there are expected contributions from new products in the pipeline, the anticipated revenue and earnings for the first quarter of 2025 are lighter than expected. These elements contribute to a cautious outlook, justifying the Hold rating as the company navigates these challenges.