Stifel raises Elanco Animal Health stock price target to $17 on parasiticide gains

Investing.com - Stifel has increased its price target on Elanco Animal Health (NYSE:ELAN) to $17.00 from $16.00 while maintaining a Buy rating ahead of the company’s second-quarter 2025 results, due August 11. According to InvestingPro data, the stock currently trades at $14.43, with analyst targets ranging from $10 to $18.

The firm cited Elanco’s parasiticide share gains both in veterinary clinics and over-the-counter markets as key factors supporting the higher target. Products including Credelio Quattro, Advantage, and Seresto have all demonstrated solid performance indicators for the second quarter of 2025. This product strength has contributed to the company’s impressive 54.89% gross margin and strong financial health score, as reported by InvestingPro.

Stifel also noted improving relationships between Elanco and veterinarians, which should help drive both current and future product adoption in the animal health market.

The research firm suggested that the Street’s 2026 constant currency revenue growth estimate of 4% may prove conservative based on their analysis of Elanco’s base business and innovation pipeline. Stifel expects 2026 operating margins to expand for the first time in four years.

Elanco currently trades at a modest discount compared to peers with mid-single-digit growth, and Stifel believes the company could attract a wider investor audience as its leverage decreases over time.

In other recent news, Elanco Animal Health reported notable developments that could impact investor decisions. The company received an upgrade from William Blair, moving from Market Perform to Outperform, due to stabilization in its core business and a promising innovation pipeline. William Blair anticipates significant growth contributions from new products like Experior and Quattro by 2025. Additionally, Elanco’s canine allergy treatment, Zenrelia, received a positive opinion from the European Medicines Agency, paving the way for potential market authorization in the EU. This approval is expected to bolster Elanco’s product portfolio in the coming months.

In financial updates, TD Cowen raised Elanco’s stock price target to $15, citing strong first-quarter performance and increased revenue estimates for 2025. The firm highlighted the potential of innovative brands such as Experior, Bovaer, Credelio Quattro, and Zenrelia to drive growth. Meanwhile, Leerink Partners adjusted Elanco’s price target to $14.50, maintaining a Market Perform rating, and expressed cautious optimism about future revenue growth. The firm pointed to rising competition and a lack of recent innovative product launches as challenges.

In leadership news, Elanco appointed Robert VanHimbergen as the new Chief Financial Officer, effective July 2025, as part of its ongoing strategy to strengthen its position in the animal health industry. The company reaffirmed its second-quarter and full-year guidance, emphasizing its commitment to strategic objectives and financial leadership continuity. These developments reflect Elanco’s efforts to navigate market challenges and capitalize on growth opportunities.

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