What Happened?
Shares of animal health company Elanco (NYSE:ELAN) jumped 1.4% in the morning session after Stifel raised its price target on the company's shares to $23 from $18 while keeping a Buy rating, pointing to a strong outlook for product growth.
The investment firm's analysis found that Wall Street's longer-term profit margin estimates appeared too low and noted potential for higher-than-expected revenue. Stifel projected that new and recently launched products could drive significant revenue growth in 2026. For example, the firm expected the market share for its product Credelio Quattro to reach nearly 17% in the U.S. by that year. The positive analyst action followed recent news that the U.S. Food and Drug Administration (FDA) approved an improved label for the company's skin allergy drug for dogs, Zenrelia. The update removed language about a vaccine-induced disease risk, which improved the product's profile.
After the initial pop the shares cooled down to $18.72, up 0.9% from previous close.
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What Is The Market Telling Us
Elanco’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 16 days ago when the stock gained 2.2% on the news that the company announced its parasite protection product, Credelio Quattro, reached $100 million in net sales in less than eight months.
This achievement makes the chewable tablet Elanco's fastest pet health product to achieve blockbuster status. Launched in January, Credelio Quattro protects dogs from fleas, ticks, heartworm disease, and three types of intestinal parasites. The product has rapidly gained traction, capturing approximately 14% of the dollar share in broad-spectrum sales from U.S. veterinary clinics by June.
Adding to the positive news, Elanco also announced that Zenrelia, a treatment for dermatitis in dogs, is now available in the European Union and Great Britain. The company is preparing for a global expansion of Credelio Quattro, with submissions in several other countries.
Elanco is up 55.3% since the beginning of the year, and at $18.72 per share, it is trading close to its 52-week high of $19.20 from September 2025. Investors who bought $1,000 worth of Elanco’s shares 5 years ago would now be looking at an investment worth $712.41.
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