BofA raises Elanco share price target on solid core business By

BofA raises Elanco share price target on solid core business By

On Thursday, BofA Securities adjusted its outlook on Elanco Animal Health (NYSE:) 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.

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