Goldman Sachs analyst Nathan Rich double downgraded Elanco to Sell from Buy with a price target of $19, down from $32. While the stock is down 40% in the past year, the shares could underperform peers on lower revenue growth and margin expansion than is contemplated in the company’s long-term targets, Rich tells investors in a research note. The analyst’s adjusted EBITDA estimates through 2024 are up tp 17% below the consensus. He says Elanco’s ramp of new product revenue has been more prolonged than anticipated, macro and competitive pressures have increased, and cost headwinds have emerged as an offset to margin expansion.
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