Jefferies analyst Glen Santangelo reiterated a Buy rating on Elanco Animal Health (ELAN – Research Report) yesterday and set a price target of $18.00.
Glen Santangelo has given his Buy rating due to a combination of factors that highlight Elanco Animal Health’s potential for growth and market undervaluation. The company is trading at a relatively low multiple of its estimated 2026 EBITDA, suggesting there is significant room for valuation expansion. This potential is supported by the strong performance of innovative products, which are projected to generate substantial revenue by 2025.
Additionally, Elanco’s recent financial results and guidance indicate a positive trajectory, with notable growth in various segments such as US and International Pet Health. The company has also demonstrated a commitment to reducing leverage, having paid down a significant portion of its debt. These factors, combined with positive commentary on key products like Zenrelia, contribute to the belief that the current market sentiment is overly negative, making the stock an attractive buy opportunity.
In another report released on February 26, UBS also maintained a Buy rating on the stock with a $17.00 price target.