Elanco upgraded to Buy from Hold at Stifel

Stifel upgraded Elanco (ELAN) to Buy from Hold with a price target of $20, up from $13. Despite the recent rally, the stock’s valuation relative to Idexx Laboratories (IDXX) and Zoetis (ZTS) is basically unchanged since most animal health names in the group have rallied of late, the analyst tells investors in a research note. The firm says the Elanco “party is just getting started, and should last several years.” While visibility into the timing of Zenreliab’s and Quattrob’s approvals are limited, Stifel’s survey diligence is “solid” with Zenrelia capturing the most impressive feedback, which offers the largest incremental revenue opportunity, the analyst tells investors in a research note.