Analyst Steve Scala of TD Cowen maintained a Buy rating on Elanco Animal Health, boosting the price target to $24.00.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Steve Scala has given his Buy rating due to a combination of factors including Elanco Animal Health’s strong momentum in the third quarter, which is expected to persist despite a challenging macroeconomic and competitive landscape. The company’s sales and earnings per share are projected to grow significantly, with a compound annual growth rate of 4% and 11% respectively from 2025 to 2032. This positive outlook is supported by an updated price target of $24, reflecting confidence in Elanco’s strategic direction and financial prospects.
Additionally, Steve Scala highlights the potential for increased sales of key products such as Zenrelia and Credelio Quattro, with substantial growth anticipated in both ex-U.S. and U.S. markets. The forecasted revenue and margin expansion, alongside favorable trends in the U.S. cattle market, further bolster the investment thesis. The anticipated improvements in gross profit margin and operating income margin from 2026 onwards, despite some expected increases in interest expenses, contribute to the overall positive assessment of Elanco’s future performance.
In another report released on November 21, KeyBanc also initiated coverage with a Buy rating on the stock with a $27.00 price target.