Update shared on12 Oct 2025
Fair value Increased 8.13%Analysts have raised their price target for Elanco Animal Health from $18 to $23, citing improved revenue prospects and expectations that profit margins could surpass previous market estimates.
Analyst Commentary
Bullish Takeaways- Bullish analysts see potential for revenue growth to outperform current market expectations, based on recent data analysis and survey feedback.
- They identify opportunity for improving profit margins, projecting that long-term EBIT margins could exceed previous forecasts.
- The upward price target revision reflects confidence in Elanco’s ability to capture additional market share. This is supported by positive momentum in U.S. sales trends.
- Analysts note strong execution on strategic initiatives, which may enhance both operational efficiency and investor returns in the coming quarters.
- Some analysts remain cautious about whether recent sales data will translate into sustainable growth across all product segments.
- There are concerns that margin improvement might be limited by cost pressures or delayed realization of operational efficiencies.
- Bearish analysts highlight the risk that optimistic revenue projections could be tempered by competitive pressures or shifting market dynamics.
What's in the News
- Elanco announced removal of risk language from the U.S. Zenrelia label following FDA review, clarifying the safety profile of the canine allergy treatment (Key Developments).
- Credelio Quattro achieved blockbuster status, surpassing $100 million in sales in under eight months and setting the stage for geographic expansion beginning in 2026 (Key Developments).
- Zenrelia received regulatory approval in both the United Kingdom and European Union, expanding its availability to new international markets (Key Developments).
- Elanco was added as a constituent to multiple S&P indices, including the S&P 1000, S&P 400, S&P 400 Health Care Sector, and S&P Composite 1500 (Key Developments).
- Elanco updated its 2025 financial guidance, slightly raising revenue expectations while anticipating a net loss for the year (Key Developments).
Valuation Changes
- Fair Value has risen from $19 to $20.55, reflecting a moderate increase in projected company worth.
- Discount Rate remains unchanged at 6.78%, indicating stability in risk and return expectations.
- Revenue Growth projections have increased slightly from 4.70% to 4.89%, suggesting marginally higher long-term growth expectations.
- Net Profit Margin estimates have edged down from 3.77% to 3.75%, signaling a minor reduction in anticipated profitability.
- Future P/E ratio has increased from 60.1x to 65.0x. This results in a modest expansion of valuation multiples based on forward earnings.
Disclaimer
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