ELAN Stock Forecast & Price Target

Elanco Animal Health has demonstrated strong market leadership with its products, particularly Simparica Trio, which retains over a 50% market share, while the upcoming Credelio Quattro is projected to increase its share from 12.8% in 2025 to an estimated 16.8% in 2026. Additionally, products like the Advantage Family and Seresto have shown impressive year-over-year growth rates of 33% and 28%, respectively, in the third quarter of 2025, indicating a robust demand and positive market trends. These factors suggest a solid foundation for continued revenue growth and a favorable outlook for the company's stock performance.

Elanco Animal Health faces potential near-term risks to its earnings growth, particularly in 2026, stemming from concerns regarding its refinancing needs, as highlighted by a recent $550 million bond offering by a separate company at a high interest rate. Despite achieving a revenue increase of approximately 50%, the company has experienced a decline in its EBITDA margin by a few hundred basis points, indicating pressure on profitability. Moreover, while Elanco's 2Q EBITDA saw an outperformance of $28 million, these factors collectively suggest challenges ahead for sustaining positive financial momentum.