KeyBanc starts Elanco at Overweight on revenue growth efforts

KeyBanc initiated coverage of Elanco (ELAN) with an Overweight rating and $27 price target The firm expects success of the company’s recent product launches to boost revenue growth and expand margins, while acknowledging challenges in displacing incumbent treatments, the analyst tells investors in a research note. KeyBanc adds that it sees a significant reduction in Elanco’s leverage and looks to further improvement from increasing cash flows.