Morgan Stanley Issues Positive Forecast for Elanco Animal Health (NYSE:ELAN) Stock Price

Key Points

• Morgan Stanley raised its price target on Elanco Animal Health from $23 to $26, while keeping an equal weight rating. The new target implies only modest upside from the stock’s current price.
• Other analysts have also turned constructive on ELAN, with recent target increases from JPMorgan, TD Cowen, and Citigroup; the overall consensus remains Moderate Buy with an average target of $28.73.
• Elanco shares rose 1.6% to $25.90, and the company recently posted stronger-than-expected quarterly results, beating EPS and revenue estimates. Management also guided for FY 2026 EPS of $1.03 to $1.09.

Elanco Animal Health (NYSE:ELAN - Get Free Report) had its price objective boosted by equities research analysts at Morgan Stanley from $23.00 to $26.00 in a report issued on Wednesday,Benzinga reports. The firm presently has an "equal weight" rating on the stock. Morgan Stanley's target price would suggest a potential upside of 0.40% from the company's current price.

A number of other research firms also recently commented on ELAN. JPMorgan Chase & Co. boosted their target price on shares of Elanco Animal Health from $28.00 to $30.00 and gave the stock an "overweight" rating in a report on Thursday, May 7th. TD Cowen lifted their price target on shares of Elanco Animal Health from $31.00 to $32.00 and gave the stock a "buy" rating in a research report on Thursday, June 18th. Weiss Ratings cut Elanco Animal Health from a "sell (d+)" rating to a "sell (d)" rating in a report on Monday, May 11th. Wall Street Zen downgraded Elanco Animal Health from a "strong-buy" rating to a "buy" rating in a research report on Sunday, May 24th. Finally, Citigroup raised their price objective on Elanco Animal Health from $30.00 to $31.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $28.73.

Elanco Animal Health Stock Up 1.6%

Shares of ELAN stock traded up $0.42 during mid-day trading on Wednesday, reaching $25.90. 2,469,063 shares of the company were exchanged, compared to its average volume of 5,302,318. Elanco Animal Health has a fifty-two week low of $13.39 and a fifty-two week high of $27.72. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.12 and a current ratio of 2.16. The company has a market capitalization of $12.93 billion, a P/E ratio of -51.78, a P/E/G ratio of 1.64 and a beta of 1.68. The business's 50 day simple moving average is $23.78 and its 200 day simple moving average is $23.93.

Elanco Animal Health (NYSE:ELAN - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The company reported $0.40 EPS for the quarter, beating analysts' consensus estimates of $0.34 by $0.06. Elanco Animal Health had a negative net margin of 4.95% and a positive return on equity of 7.42%. The firm had revenue of $1.37 billion for the quarter, compared to the consensus estimate of $1.28 billion. During the same period in the prior year, the firm posted $0.37 EPS. The firm's revenue was up 14.9% compared to the same quarter last year. 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. Research analysts predict that Elanco Animal Health will post 1.11 earnings per share for the current year.

Insider Activity at Elanco Animal Health

In other Elanco Animal Health news, insider Rajeev A. Modi purchased 4,911 shares of the company's stock in a transaction on Friday, May 15th. The shares were bought at an average cost of $20.35 per share, with a total value of $99,938.85. Following the transaction, the insider directly owned 160,812 shares in the company, valued at approximately $3,272,524.20. This represents a 3.15% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Jeffrey N. Simmons bought 4,971 shares of the business's stock in a transaction that occurred on Friday, May 15th. The shares were bought at an average price of $20.09 per share, with a total value of $99,867.39. Following the completion of the purchase, the chief executive officer owned 171,971 shares in the company, valued at approximately $3,454,897.39. The trade was a 2.98% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders own 1.14% of the company's stock.

Hedge Funds Weigh In On Elanco Animal Health

Several hedge funds and other institutional investors have recently modified their holdings of ELAN. NewEdge Advisors LLC increased its position in shares of Elanco Animal Health by 133.7% during the 4th quarter. NewEdge Advisors LLC now owns 1,096 shares of the company's stock worth $25,000 after purchasing an additional 627 shares in the last quarter. Root Financial Partners LLC grew its position 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 worth $40,000 after acquiring an additional 592 shares during the last quarter. Uniplan Investment Counsel Inc. bought a new stake in Elanco Animal Health during the 4th quarter worth approximately $41,000. Torren Management LLC acquired a new stake in Elanco Animal Health during the 4th quarter valued at $46,000. Finally, Bessemer Group Inc. increased its holdings in Elanco Animal Health by 33.2% during the 1st quarter. Bessemer Group Inc. now owns 2,105 shares of the company's stock valued at $50,000 after purchasing an additional 525 shares in the last quarter. Institutional investors own 97.48% of the company's stock.

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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