UPDATE: Credit Suisse Upgrades Elanco Animal Health (ELAN) to Outperform
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Credit Suisse analyst Erin Wilson Wirght upgraded Elanco Animal Health (NYSE: ELAN) from Neutral to Outperform with a price target of $38.00 (from $33.00).
The analyst comments "e are upgrading Elanco (ELAN) to Outperform (from Neutral) on incremental conviction in its recently-detailed path forward to more consistent +3-4% annual topline growth, largely driven by innovation (+200-300 bps annually), as well as meaningful margin expansion, where ELAN should achieve its 60% GM and 31% operating margin targets by YE24. While we acknowledge continuing competitive challenges and pipeline opportunities that are longer term in nature, these dynamics are well-advertised, and we view the magnitude of the valuation disconnect between ELAN and its Animal Health peers as unwarranted on more tangible evidence of topline and margin execution, as indicated by the latest 4Q upside and 2021 guidance raise, with advances in its pipeline also materializing. Importantly, our focus is on Bayer synergy opportunities and diligent cost structure initiatives helping to drive meaningful EBITDA margin expansion (+1,215 bps 2021-2025)."
Shares of Elanco Animal Health closed at $31.73 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Upgrades
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