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Elanco Animal Health (NYSE:ELAN) Incorporated (NYSE: ELAN) shares have tumbled to a 52-week low, touching down at $10.19. The $5 billion market cap company, known for its innovative animal health solutions, has faced a challenging market environment, reflected in a significant 1-year decline of -35.19%. According to InvestingPro analysis, the stock appears undervalued, trading at a P/E ratio of 14.9x with strong fundamentals including a 54.9% gross profit margin. This downturn highlights investor concerns and market pressures that have weighed heavily on Elanco’s stock performance over the past year. Despite the current lows, the company continues to strive for a turnaround, focusing on strategic initiatives that may stabilize its position in the market. InvestingPro analysis reveals several positive indicators, including strong liquidity and attractive free cash flow yields. Discover 6 additional key insights and a comprehensive Pro Research Report available exclusively to InvestingPro subscribers.
In other recent news, Elanco Animal Health reported its fourth-quarter 2024 earnings, revealing a slight miss on earnings per share (EPS) expectations, posting $0.14 compared to the forecasted $0.15. However, the company exceeded revenue expectations with $1.02 billion, surpassing the anticipated $1.01 billion. For the full year, Elanco’s revenue stood at $4.4 billion, with an adjusted EBITDA of $910 million, reflecting a marginal increase from the previous year. Looking forward, Elanco expects 2025 to see organic constant currency revenue growth of 4% to 6%, with a projected adjusted EBITDA growth between 1% and 5%.
Stifel analysts recently reduced Elanco’s stock price target from $16.00 to $15.00 while maintaining a Buy rating, following Elanco’s financial disclosures. The analysts noted that while Elanco’s fourth-quarter gross margins fell short of expectations, the company’s revenue exceeded forecasts, and the U.S. adoption rate of Zenrelia was noteworthy. Additionally, Elanco’s guidance for 2025 revenue is promising, with an expected acceleration in organic constant currency revenue growth. The potential for margin expansion in 2026 was also highlighted, with Stifel expressing confidence in the company’s ability to meet growth targets.
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