ELANCO ANIMAL HEALTH: Momentum increases; +25%!

Our target price increase to USD 17.50 was spot on (timing and price)! The figures for 2Q25 show strong organic growth of +8%, which at the same time leads to an increase in the full-year forecast for the "veterinary specialist" ELANCO ANIMAL HEALTH. The company is also keeping an eye on potential customs charges, which are currently estimated at USD 10 million to USD 14 million for 2025; countermeasures are already being introduced to optimize the situation. The animal health company reports significant progress, both in the companion animal health portfolio and in the innovation pipeline. The positive momentum from 1Q25 continues, which manifests itself in a new 52-week high of USD 16.67! The investment firms are immediately on hand with "outperform" and "buy" ratings, with the highest price target at USD 21 (Bank of America). The 2Q25 performance also exceeded the company's own sales guidance, by USD 56m. Particularly strong results came from the US Pet Health segment, which grew by +11%... and which recorded its eighth consecutive quarterly growth! Adjusted earnings per share amounted to USD 0.26, USD 0.07 above expectations. Progress has also been made with the debt reduction strategy: The net value was reduced by a pleasing USD 500 million; however, there is definitely still a need for action here. According to CEO Jeff Simmons, ELANCO is "an implementation story"! In the course of this, we clearly expect to reach the price target of USD 17.50, where we take the profit of approx. +35%!

ELANCO ANIMAL HEALTH is listed on the NYSE in New York under the symbol ELAN, the security number is 43'127'600, last price approx. USD 17.11.