Elanco (ELAN): Valuation Check After Credelio Quattro-CA1 Approval and Growing Wall Street Optimism

Elanco Animal Health (ELAN) just checked two important boxes for investors, pairing a conditional FDA green light for its Credelio Quattro-CA1 parasite treatment with a wave of upbeat Wall Street commentary.

See our latest analysis for Elanco Animal Health.

The conditional approval lands after a powerful run, with an 84 percent year to date share price return and an 87 percent one year total shareholder return. This signals momentum that still looks more like a turnaround than a trade.

If this kind of rerating story has your attention, it could be a good moment to scan other veterinary and pharma names through our focused healthcare stocks and see what else is starting to move.

With shares still trading at a discount to both analyst targets and some intrinsic value estimates even after a blistering run, investors now have to ask: Is Elanco still mispriced, or has the market already baked in the turnaround?

Most Popular Narrative: 8.1% Undervalued

With Elanco Animal Health closing at $22.22 against a narrative fair value of about $24.17, the current setup hints at lingering upside if execution holds.

The analysts have a consensus price target of $18.182 for Elanco Animal Health based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $21.0, and the most bearish reporting a price target of just $14.0.

Read the complete narrative.

To see why a higher fair value still stands despite a softer Street target, shrinking margins, and slower top line growth assumptions, explore the full narrative.

Result: Fair Value of $24.17 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained FX headwinds and slower than expected uptake of new launches like Credelio Quattro could quickly challenge the current undervaluation story.

Find out about the key risks to this Elanco Animal Health narrative.

Build Your Own Elanco Animal Health Narrative

If you see the story differently or would rather dig into the numbers yourself, you can build a personalized view in just minutes: Do it your way.

A great starting point for your Elanco Animal Health research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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