Mar. 17 at 4:25 PM
$ELAN
For those interested in ELAN, this was included in the report referenced in the re-shared post below:
Investment Thesis:
Elanco Animal Health Incorporated (ELAN) Our Buy rating is predicated upon our more upbeat diligence around Elanco's Pet Health Innovation including Zenrelia and Credelio Quattro, which are key drivers to the company's long-term growth goals including Innovation revenue guidance of ~
$1.15B in 2026. Our positive diligence on Elanco's Innovation bucket gives us confidence in the products' ability to help drive long-term revenue growth of +MSD%, along with margin expansion.
Target Price Methodology/Risks:
Elanco Animal Health Incorporated (ELAN) Our target price of
$32 is predicated on a target EV/EBITDA multiple of approximately ~18x applied to our 2027 adjusted EBITDA estimate. Risks to our target price include: (1) regulatory restrictions and clinical delays could adversely impact Elanco; (2) Elanco's sales could be negatively impacted by the introduction of generic alternatives and other factors that make its products less competitive; (3) Elanco has a significant amount of debt on its balance sheet, and its inability to de-lever represents a risk to the business.
