ELAN - Elanco downgraded at Stifel on near-term pressure on revenue

Elanco Animal Health (ELAN -1.2%) shares are set to extend losses for the third consecutive session after Stifel lowered its rating to Hold from Buy, noting a medium-term impact on its topline. The price target at $34 per share implies a premium of only ~2.1% to the last close. Highlighting that the downgrade was not due to any concerns over the company’s upcoming Q3 print, the analyst Jonathan Block notes that the bearish view “is centered on issues that may become more acute as Elanco enters 2022.” Block predicts “a potential revenue air pocket on the horizon” due to several factors, including the slow rate of innovation at the animal health company and market share losses for one of its biggest divisions (Parasiticides). The firm sets +2% organic growth for Elanco (NYSE:ELAN) in 2022, below the company’s long-term target of +3 – 4%. In August, Elanco (ELAN) lowered its 2021 adjusted

For further details see:

Elanco downgraded at Stifel on near-term pressure on revenue