Update shared on08 Aug 2025
Fair value Increased 12%Elanco Animal Health’s consensus price target has been raised to $17.45, driven by improved business stability, accelerating growth from an enhanced innovation pipeline, and increased traction of its product CQ.
Analyst Commentary
- Improved core business stability driven by better execution, providing a firmer foundation for future product innovation.
- Upbeat momentum and strengthened pipeline visibility highlighted in recent management discussions.
- Near-term growth acceleration expected from Elanco’s innovation portfolio.
- Long-term growth potential supported by a pipeline of new products, recent acquisitions, and fresh management leadership.
- Evidence of Elanco’s product CQ (chloroquine) gaining traction as a competitor in the market, creating headwinds for peers and supporting bullish sentiment.
What's in the News
- Elanco raised 2025 revenue guidance slightly but widened expected net loss, now forecasting a net loss of $38 million to $14 million versus prior guidance of $35 million to $7 million.
- Zenrelia (ilunocitinib), a once-daily oral JAK inhibitor for canine allergic and atopic dermatitis, received European Commission approval following a successful head-to-head study against Apoquel.
- The USDA approved TruCan Ultra CIV H3N2/H3N8 canine influenza vaccine, further expanding Elanco’s Tru Portfolio for respiratory protection in dogs.
- Elanco published a report on the impact of canine itching, highlighting market potential for Zenrelia as a cost-effective solution for pruritus in dogs.
- Robert VanHimbergen was appointed CFO, effective July 2025, bringing experience from Hillenbrand and Johnson Controls, while prior CFO Todd Young will assist in transition through August.
Valuation Changes
Summary of Valuation Changes for Elanco Animal Health
- The Consensus Analyst Price Target has significantly risen from $15.55 to $17.45.
- The Net Profit Margin for Elanco Animal Health has significantly risen from 2.96% to 3.45%.
- The Discount Rate for Elanco Animal Health has risen from 6.40% to 6.78%.
Disclaimer
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