UPDATE: Stifel Downgrades Elanco Animal Health (ELAN) to Hold

Stifel analyst Jonathan Block downgraded Elanco Animal Health (NYSE: ELAN) from Buy to Hold with a price target of $34.00 (from $37.00).

The analyst comments "Our downgrade to Hold does not reflect concerns specific to upcoming 3Q21 results (November 5), but rather is centered on issues that may become more acute as Elanco enters 2022. We see a potential revenue air pocket on the horizon as share losses in one of its biggest divisions (Parasiticides) accelerate, the overall international livestock market remains challenged, and drivers such as the Innovation bucket take off at a lower trajectory than expected. Our accompanying proprietary diligence identifies future modest share losses for Interceptor PLUS and Credelio, two products that reside in Elanco’s Focus bucket, and Galliprant may come under pressure if competing canine pain mAbs enter the U.S. market (expected 2H22). While the next class of Innovation (2022 cohort) should aid future revenue, we don’t expect an immediate impact out of the gate. Our estimates move lower, with 2022 organic revenue growth of +2%, below Elanco’s +3-4% long-term range."

For an analyst ratings summary and ratings history on Elanco Animal Health click here. For more ratings news on Elanco Animal Health click here.

Shares of Elanco Animal Health closed at $33.31 yesterday.

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