Analyst Expectations For Elanco Animal Health's Future

Throughout the last three months, 7 analysts have evaluated Elanco Animal Health ELAN, offering a diverse set of opinions from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts have set 12-month price targets for Elanco Animal Health, revealing an average target of $15.14, a high estimate of $20.00, and a low estimate of $12.00. Witnessing a positive shift, the current average has risen by 14.7% from the previous average price target of $13.20.

Interpreting Analyst Ratings: A Closer Look

The analysis of recent analyst actions sheds light on the perception of Elanco Animal Health by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Elanco Animal Health. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Elanco Animal Health compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Elanco Animal Health's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Elanco Animal Health analyst ratings.

Delving into Elanco Animal Health's Background

Elanco Animal Health Inc is an animal health company that is engaged in innovating, developing, manufacturing, and marketing products for companion and food animals. Geographically, the company's operations are conducted globally and sell its products in over 90 countries. It offers a range of food animal products used in cattle, sheep, goats, and swine production.

A Deep Dive into Elanco Animal Health's Financials

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Elanco Animal Health's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 4.09%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: Elanco Animal Health's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -102.62%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Elanco Animal Health's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -16.17%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Elanco Animal Health's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -7.27%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Elanco Animal Health's debt-to-equity ratio stands notably higher than the industry average, reaching 0.96. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: What Are They?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.