Analyst action and market context
KeyBanc raised its price target on Elanco Animal Health (NYSE:ELAN) to $29 from $27 and reiterated an Overweight rating, citing what the firm described as strong momentum for Credelio Quattro and Zenrelia as the company moves into 2026. The stock was trading at $26.38, placing it close to both the analyst target and the 52-week high of $26.87.
Quarterly results and drivers
Elanco delivered a fourth-quarter performance that exceeded expectations on both the top and bottom lines, according to the published figures. The company reported an adjusted earnings per share of $0.13, ahead of the $0.11 consensus estimate, representing an 18.18% earnings surprise. Revenue for the quarter came in at $1.14 billion, surpassing the $1.09 billion analysts had forecast and producing a 4.59% revenue surprise.
Management highlighted that Elanco achieved approximately 7% organic constant-currency revenue growth for 2025, with volume gains cited as the primary contributor to that expansion. The company called attention to several internal metrics that it says demonstrate strong momentum for Credelio Quattro and Zenrelia as the year closed.
Analyst expectations and guidance assessment
Responding to the reported strength, KeyBanc raised its revenue estimates and adjusted its price target upward on the expectation that product momentum will extend into 2026. The firm also described the three-year outlook Elanco presented at its investor day in December as conservative, adding that the company appears positioned to deliver beats and raises during 2026.
Separately, BofA Securities raised its price target on Elanco to $30.00 from $28.00 while keeping a Buy rating. BofA noted management’s expectation for steady fiscal 2026 growth, attributing it in part to favorable cattle economics supporting the Farm Animal business and continued momentum in Experior. The firm also cited anticipated mid-single-digit growth in Pet Health.
Stock performance and valuation context
Over the last year the shares have produced a substantial return, rising roughly 147% according to InvestingPro data. That performance contrasts with InvestingPro’s Fair Value analysis, which suggests shares may be trading above intrinsic value at current levels. The platform also offers an in-depth Pro Research Report covering Elanco as part of its broader U.S. equity coverage.
Implications for investors
The combination of product-specific momentum, quarterly beats, and upward revisions to analyst estimates has driven renewed positive sentiment among some coverage firms. At the same time, external assessments of fair value indicate that current market pricing may incorporate high expectations.
Key points
- KeyBanc increased its Elanco price target to $29 from $27 and kept an Overweight rating, citing Credelio Quattro and Zenrelia momentum.
- Elanco beat Q4 expectations with adjusted EPS of $0.13 versus $0.11 expected, and revenue of $1.14 billion versus $1.09 billion expected.
- BofA raised its target to $30, noting expected 2026 growth fueled by favorable cattle economics and continued product strength in Experior and Pet Health.
Risks and uncertainties
- Valuation risk - External fair value analysis suggests shares may be overvalued at current market levels, which could raise downside risk if growth fails to meet elevated expectations.
- Product momentum dependence - Continued share performance is closely tied to sustained momentum for Credelio Quattro and Zenrelia; any slowdown in adoption or demand would affect results.
- Macroeconomic sensitivity in Farm Animal segment - Management and analysts cited cattle economics as a driver of Farm Animal growth in 2026, making the segment sensitive to changes in those market conditions.