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Investing.com - Stifel has raised its price target on Elanco Animal Health (NYSE:ELAN) to $23.00 from $18.00 while maintaining a Buy rating. The stock, currently trading at $18.54, has shown remarkable momentum with a 73% gain over the past six months and is approaching its 52-week high of $19.35. According to InvestingPro analysis, ELAN appears fairly valued at current levels.
The firm’s analysis shows Credelio Quattro’s U.S. market share is expected to reach nearly 17.0% in 2026, up from an estimated 12.8% in 2025, which alone could contribute over 150 basis points to revenue growth next year.
Stifel projects 400-500 basis points of year-over-year revenue growth in 2026 from recently launched and new products, including contributions from CQ International, U.S. Zenrelia, International Zenrelia, IL-31, and Experior, with momentum expected to continue into 2027.
The research firm notes that with several other innovation products also growing, Elanco would only need a flattish base business to drive revenue upside over the next 12-24 months.
Stifel’s analysis also indicates the innovation portfolio is margin accretive, with additional cost and efficiency opportunities available through the Elanco Ascend initiative, suggesting the consensus longer-term EBIT margin estimate may be too low.
In other recent news, Elanco Animal Health has reported significant developments that are drawing attention from investors. The company announced that its parasite protection product, Credelio Quattro, has achieved a milestone of $100 million in net sales in less than eight months. This product has captured approximately 14% of the dollar share in broad-spectrum sales from U.S. veterinary clinics as of June. Furthermore, Elanco’s second-quarter 2025 earnings exceeded expectations, with an adjusted earnings per share of $0.26, surpassing the forecast of $0.20, and revenue reaching $1.24 billion, above the anticipated $1.18 billion.
Additionally, Elanco is set to join the S&P MidCap 400 index, replacing Sarepta Therapeutics, which will move to the S&P SmallCap 600. This inclusion in the index is part of a broader reshuffling due to Berkshire Hills Bancorp’s acquisition of Brookline Bancorp. The company’s recent financial performance and strategic positioning in the index have been positively received by the market.
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