Elanco Animal Health (NYSE:ELAN) Stock Price Expected to Rise, Citigroup Analyst Says

Key Points

• Citigroup raised its target price on Elanco to $31 and kept a "buy" rating (implying ~28.8% upside), joining other firms like JPMorgan and Piper Sandler in lifting targets as the consensus rating sits at "Moderate Buy" with a $28.20 target.
• Q1 beat and guidance split: Elanco reported Q1 revenue of $1.37B and adjusted EPS of $0.40, topping estimates and raising FY‑2026 guidance, but its Q2 EPS guide of $0.250–0.285 came in below consensus, contributing to investor selling.
• Shares dropped about 8.1% to $24.07 on heavy volume, and investors remain cautious due to a negative net margin and roughly ~3.5x net leverage despite improving metrics.

Elanco Animal Health (NYSE:ELAN - Get Free Report) had its target price raised by equities research analysts at Citigroup from $30.00 to $31.00 in a report issued on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Citigroup's target price suggests a potential upside of 28.82% from the company's previous close.

Other equities research analysts also recently issued research reports about the stock. JPMorgan Chase & Co. increased their target price on shares of Elanco Animal Health from $28.00 to $30.00 and gave the stock an "overweight" rating in a research report on Thursday. Piper Sandler raised Elanco Animal Health from a "neutral" rating to an "overweight" rating and lifted their price objective for the company from $24.00 to $30.00 in a research report on Thursday, January 22nd. Weiss Ratings upgraded Elanco Animal Health from a "sell (d)" rating to a "sell (d+)" rating in a research note on Monday, April 27th. UBS Group reaffirmed a "buy" rating on shares of Elanco Animal Health in a research report on Tuesday, March 10th. Finally, KeyCorp raised their price target on Elanco Animal Health from $27.00 to $29.00 and gave the stock an "overweight" rating in a research note on Wednesday, February 25th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $28.20.

Elanco Animal Health Stock Down 8.1%

Shares of Elanco Animal Health stock traded down $2.12 during midday trading on Thursday, hitting $24.07. The company's stock had a trading volume of 11,810,339 shares, compared to its average volume of 5,067,905. Elanco Animal Health has a 1-year low of $11.83 and a 1-year high of $27.72. The company has a quick ratio of 1.08, a current ratio of 2.17 and a debt-to-equity ratio of 0.60. The firm has a market capitalization of $11.96 billion, a P/E ratio of -50.13, a PEG ratio of 2.93 and a beta of 1.69. The stock has a 50-day simple moving average of $23.85 and a 200-day simple moving average of $23.33.

Elanco Animal Health (NYSE:ELAN - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.06. The firm had revenue of $1.37 billion for the quarter, compared to analyst estimates of $1.28 billion. Elanco Animal Health had a positive return on equity of 7.16% and a negative net margin of 4.92%.Elanco Animal Health's quarterly revenue was up 14.9% on a year-over-year basis. During the same period in the previous year, the firm earned $0.37 earnings per share. Elanco Animal Health has set its Q2 2026 guidance at 0.250-0.285 EPS and its FY 2026 guidance at 1.030-1.090 EPS. As a group, sell-side analysts expect that Elanco Animal Health will post 1.03 earnings per share for the current year.

Hedge Funds Weigh In On Elanco Animal Health

A number of institutional investors have recently modified their holdings of the company. NewEdge Advisors LLC increased its stake in shares of Elanco Animal Health by 133.7% in the fourth quarter. NewEdge Advisors LLC now owns 1,096 shares of the company's stock worth $25,000 after purchasing an additional 627 shares during the period. Huntington National Bank boosted its stake in Elanco Animal Health by 136.7% during the 3rd quarter. Huntington National Bank now owns 1,882 shares of the company's stock valued at $38,000 after purchasing an additional 1,087 shares during the period. Root Financial Partners LLC boosted its stake in Elanco Animal Health by 50.7% during the 4th quarter. Root Financial Partners LLC now owns 1,759 shares of the company's stock valued at $40,000 after purchasing an additional 592 shares during the period. Uniplan Investment Counsel Inc. acquired a new stake in Elanco Animal Health in the 4th quarter valued at approximately $41,000. Finally, Whittier Trust Co. of Nevada Inc. grew its holdings in Elanco Animal Health by 80.3% in the 3rd quarter. Whittier Trust Co. of Nevada Inc. now owns 2,021 shares of the company's stock valued at $42,000 after buying an additional 900 shares during the last quarter. Institutional investors own 97.48% of the company's stock.

Key Headlines Impacting Elanco Animal Health

Here are the key news stories impacting Elanco Animal Health this week:

• Positive Sentiment: Q1 beat and upgraded full‑year targets: Elanco reported Q1 revenue of $1.371B (+15% y/y) and adjusted EPS of $0.40, above consensus, and raised FY 2026 guidance for revenue, adjusted EBITDA and adjusted EPS while improving year‑end net leverage goals. This is the primary fundamental positive supporting the stock. PR Newswire: Q1 Results
• Positive Sentiment: Product momentum and approvals: Elanco highlighted product wins (Negasunt Powder and Tanidil emergency use authorizations) cited as drivers of near‑term revenue momentum. Investors view product approvals as supportive for innovation revenue growth. Benzinga: Product Momentum
• Positive Sentiment: Analyst upgrade: JPMorgan raised its price target to $30 and moved Elanco to an “overweight” rating, signaling a ~25% upside from the recent price and potentially supporting further analyst-driven buying. Benzinga: JPMorgan PT Raise
• Neutral Sentiment: Full disclosure materials available: The company posted its earnings slide deck and the full earnings call transcript for deeper investor review — useful for modeling and verifying management commentary. Earnings Presentation Earnings Call Transcript
• Negative Sentiment: Near‑term guide miss and investor focus on Q2: Elanco set Q2 EPS guidance of $0.250–0.285, below the consensus figure cited in coverage (~$0.290). That softer near‑term guide appears to be a key reason shares fell despite the beat and FY raise. Zacks: Q1 Beat & Guidance
• Negative Sentiment: Profitability and leverage remain watchpoints: The company still shows a negative net margin and leveraged balance sheet (net leverage ~3.5x now), which keeps some investors cautious despite improved targets. Market participants may be trimming positions on these structural risks. MarketBeat: Financial Snapshot

About Elanco Animal Health

Elanco Animal Health Inc is a global leader in animal health dedicated to improving food and companion animal well-being. The company develops, manufactures and markets a range of products, including parasiticides, vaccines, antibiotics and feed additives designed to prevent and treat disease in livestock and pets. Elanco's portfolio spans both food-producing animals—such as cattle, swine, poultry and aquaculture—and companion animals, with offerings that support parasite control, pain management and infectious disease prevention.

Originally founded as the animal health division of Eli Lilly and Company in the mid-20th century, Elanco was spun off into an independent publicly traded company in 2018.

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