Elanco Animal Health: Hold Rating Amid Mixed Segment Performance and Future Growth Potential

William Blair analyst Brandon Vazquez has reiterated their neutral stance on ELAN stock, giving a Hold rating on May 5.

Brandon Vazquez has given his Hold rating due to a combination of factors influencing Elanco Animal Health’s performance. The company’s sales and earnings per share slightly exceeded market expectations, primarily driven by the farm animal segment, while the pet health segment underperformed, particularly in the U.S. retail market.
Despite these mixed results, Elanco maintained its full-year guidance and increased expectations for innovation revenue, signaling potential future growth. With shares trading at 10.5 times the projected 2026 earnings, Vazquez acknowledges the improving business setup and anticipates a possible turning point in the latter half of 2025, warranting a Hold rating for now.