Michael Ryskin, an analyst from Bank of America Securities, reiterated the Buy rating on Elanco Animal Health (ELAN – Research Report). The associated price target was lowered to $16.00.
Michael Ryskin has given his Buy rating due to a combination of factors including Elanco Animal Health’s promising sales performance and innovation pipeline. Despite mixed fourth-quarter results, with sales surpassing expectations but adjusted EBITDA and EPS slightly trailing, the company’s FY25 guidance indicates potential growth. Elanco anticipates organic sales growth and highlights the positive impact of new product launches, which are expected to exceed current consensus estimates.
Ryskin acknowledges the challenges posed by foreign exchange headwinds, which have significantly impacted revenue and earnings. However, excluding these FX pressures, the company’s guidance suggests stronger underlying earnings, driven by the success of products like Zenrelia and Credelio Quattro. Additionally, the anticipated approval and launch of the IL-31 SA Antibody further bolster the company’s growth prospects. Overall, Ryskin sees an attractive risk/reward scenario with Elanco’s robust product portfolio, leading to the reiterated Buy rating and a price objective of $16.
According to TipRanks, Ryskin is a 2-star analyst with an average return of 0.0% and a 46.48% success rate. Ryskin covers the Healthcare sector, focusing on stocks such as Danaher, Illumina, and Bruker.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $20.00 price target.