Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

BofA raises Elanco share price target on solid core business

EditorEmilio Ghigini
Published 05/10/2024, 04:21 AM
ELAN
-

On Thursday, BofA Securities adjusted its outlook on Elanco Animal Health (NYSE:ELAN) shares, increasing the price target to $20.00 from the previous $18.00, while reiterating a Buy rating on the stock. The upgrade reflects a positive view of the company's recent performance and future prospects.

Elanco's core business exceeded expectations, contributing to an upbeat quarterly update. This performance, along with robust second-quarter guidance, has led to a raised forecast by the analyst. The company's 2024 product approval timelines have also been pushed out, but not as significantly as some had anticipated.

The revised price objective of $20.00 is now based on a 15 times multiple of BofA Securities' forecasted FY24 enterprise value to EBITDA (EV/EBITDA), an increase from the previous 14 times multiple. This change is due to a heightened confidence in the company's product approvals.

The firm's reiteration of the Buy rating is based on Elanco's improving core business, the anticipation of a new product cycle, and the expansion of the broader industry. These factors collectively suggest a favorable outlook for the company's stock.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.