Elanco initiated with a Buy at UBS

UBS initiated coverage of Elanco (ELAN) with a Buy rating and $18 price target The shares are down 19% year-to-date and 7% last week alone on Zenrelia concerns, the analyst tells investors in a research note. The firm believes the market is assuming a “bleak” Zenrelia outlook and nominal value to Elanco’s other pipeline assets. However, the firm can “reasonably bridge” to accelerating EBITDA growth in 2026 from a 2025 trough. It believes the strong potential for EBITDA recovery against low downside risk “present a compelling 3:1 skew, highlighting an attractive long opportunity at depressed levels.”