Blair upgrades Elanco to Outperform on improved growth outlook

William Blair upgraded Elanco (ELAN) to Outperform from Market Perform after hosting investor meetings with management. The conversations gave the firm more color around Elanco’s current momentum and pipeline efforts that give it confidence to upgrade the shares. The core business has stabilized from improved execution, which provides a “better floor” for innovation products, the analyst tells investors in a research note. In the near term, Blair believes Elanco’s innovation products can help accelerate growth. Long term, the company has a pipeline, backed by acquisitions and relatively new management appointees, that can deliver additional catalysts for growth over the next few years, contends the firm.