Elanco Animal Health (ELAN): Reassessing Valuation After a 70% One-Year Share Price Rebound

Elanco Animal Health (ELAN) has quietly turned into a strong comeback story, with shares up roughly 70% over the past year as improving earnings and steady revenue growth reset expectations around its long term potential.

See our latest analysis for Elanco Animal Health.

The latest $21.9 share price sits on top of an 81.74% year to date share price return and a 70.03% total shareholder return over the past year, signalling that investors are steadily repricing Elanco for renewed growth rather than distress.

If Elanco’s rebound has you rethinking the pet and animal health space, it could be worth scanning other {healthcare stocks} that pair resilient demand with improving fundamentals.

With earnings inflecting higher, revenue growing, and the stock still trading at a discount to both intrinsic value estimates and analyst targets, is Elanco a genuine value opportunity, or is the market already baking in years of future growth?

Most Popular Narrative Narrative: 9.1% Undervalued

Compared with the last close at $21.90, the most followed narrative sees Elanco’s fair value closer to $24.08, implying meaningful upside from here.

The analysts have a consensus price target of $18.182 for Elanco Animal Health based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $21.0, and the most bearish reporting a price target of just $14.0.

Read the complete narrative.

Want to see how modest revenue growth, shifting margins, and a rich future earnings multiple can still add up to upside from here? The full narrative reveals the math.

Result: Fair Value of $24.08 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, continued FX headwinds and slower than expected uptake of new launches like Zenrelia or Credelio Quattro could quickly challenge this upside case.

Find out about the key risks to this Elanco Animal Health narrative.

Build Your Own Elanco Animal Health Narrative

If you see things differently, or want to dig into the numbers yourself, you can build a personalised Elanco thesis in just a few minutes, Do it your way.

A great starting point for your Elanco Animal Health research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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