J.P. Morgan analyst Chris Schott upgraded the rating on Elanco Animal Health to a Buy today, setting a price target of $24.00.
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Chris Schott has given his Buy rating due to a combination of factors that highlight Elanco Animal Health’s promising growth trajectory. The company is experiencing a robust innovation cycle, with new product launches like Credelio Quattro and Experior exceeding expectations and significantly contributing to revenue growth. Credelio Quattro, in particular, has gained substantial market share and is expected to continue its upward trajectory, while Experior is capitalizing on improved farm animal market dynamics.
Elanco’s innovation portfolio, which includes upcoming launches such as Zenrelia, Bovaer, and IL-31, is poised to support mid-single-digit growth in the coming years. The company’s ability to execute on these opportunities, coupled with a favorable market setup, suggests that revenue growth will positively impact margins and earnings per share. Schott’s valuation of Elanco, based on a discounted cash flow analysis, reflects confidence in the company’s top-line growth and margin expansion, further supporting the Buy rating.
In another report released on September 23, Bank of America Securities also maintained a Buy rating on the stock with a $21.00 price target.