External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Equity Bottom-Up

<ul><li>Elanco Animal Health Inc is a leading global provider of pharmaceutical products for Companion Animals and Farm Animals</li><li>Stock has declined around 50% since early 2020 due to challenges such as the Covid pandemic and disappointing guidance for FY 2022</li><li>Activist engagement from Sachem Head and a stock price trading at a wide discount to peers make Elanco an intriguing investment opportunity for those willing to weather industry turbulence</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Elanco Animal Health Inc is a leading global provider of pharmaceutical products for Companion Animals and Farm AnimalsStock has declined around 50% since early 2020 due to challenges such as the Covid pandemic and disappointing guidance for FY 2022Activist engagement from Sachem Head and a stock price trading at a wide discount to peers make Elanco an intriguing investment opportunity for those willing to weather industry turbulenceThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Elanco Animal Hlth Inc (ELAN) - Wednesday, Feb 7, 2024

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>In Q4 2023, Elanco Animal Health reported a 5% constant currency revenue growth, driven by innovations, the strength of the farm animal business, improved conditions in the European Pet Health retail market, and increased pricing.</li><li>The strong performance in 2023 indicates that the company's innovation, portfolio, and productivity strategy are working, leading to confidence in the potential success of future investments.</li><li>Going into 2024, the company aims to focus on three priorities: sustained revenue growth, innovation, and improved cash conversion.</li></ul>

In Q4 2023, Elanco Animal Health reported a 5% constant currency revenue growth, driven by innovations, the strength of the farm animal business, improved conditions in the European Pet Health retail market, and increased pricing.The strong performance in 2023 indicates that the company's innovation, portfolio, and productivity strategy are working, leading to confidence in the potential success of future investments.Going into 2024, the company aims to focus on three priorities: sustained revenue growth, innovation, and improved cash conversion.

Elanco Animal Health: Initiation Of Coverage - A Story Of Concentration on Pet Health and Livestock Sustainability! - Major Drivers

Global Healthcare Analyst

Tina Banerjee

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dechra-pharmaceuticals-plc" target="_blank" data-smartkarma-citation="entities:21908:1" rel="noopener">Dechra Pharmaceuticals (DPH LN)</a> received an offer from the Swedish private equity firm EQT regarding a possible all-cash deal, where Dechra shareholders would receive £40.70 per ordinary share in cash.</li>
<li>Right after the announcement, Dechra shares surged 33%. The shares are currently trading at £37.66, implying 10% upside potential.</li>
<li>Without EQT offer, based on current financial performance, Dechra has a bleak outlook. Currently, Dechra has average target price of £39.39, implying a spread of just ~5%.</li>
</ul>



Dechra Pharmaceuticals (DPH LN) received an offer from the Swedish private equity firm EQT regarding a possible all-cash deal, where Dechra shareholders would receive £40.70 per ordinary share in cash.
Right after the announcement, Dechra shares surged 33%. The shares are currently trading at £37.66, implying 10% upside potential.
Without EQT offer, based on current financial performance, Dechra has a bleak outlook. Currently, Dechra has average target price of £39.39, implying a spread of just ~5%.


Dechra Pharmaceuticals (DPH LN): Best Case Scenario Offers 10% Upside Potential

Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

ZoomInfo Technologies  / Equity Bottom-Up

<ul>
<li>This model seeks short-sale candidates among companies that use aggressive accounting and/or exhibit deteriorating quality of earnings.  </li>
<li>They are typically highly idiosyncratic shorts and require thoughtful analyses of upcoming catalysts.  When the company’s issues become well-known, there is often multiple compression as well as a rerating.</li>
<li>These shorts can have high or low betas, valuations based on artificial earnings and exhibit good short responses to subsequently disappointing earnings.</li>
</ul>


This model seeks short-sale candidates among companies that use aggressive accounting and/or exhibit deteriorating quality of earnings.  
They are typically highly idiosyncratic shorts and require thoughtful analyses of upcoming catalysts.  When the company’s issues become well-known, there is often multiple compression as well as a rerating.
These shorts can have high or low betas, valuations based on artificial earnings and exhibit good short responses to subsequently disappointing earnings.


Earnings Quality Short Candidates: ZoomInfo, Gogo, Elanco Animal Hlth, Sonos, Energizer

Dechra Pharmaceuticals / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dechra-pharmaceuticals-plc" target="_blank" data-smartkarma-citation="entities:21908:1" rel="noopener">Dechra Pharmaceuticals (DPH LN)</a> is a leading global specialty veterinary pharmaceuticals company, with the primary focus on companion animals (dogs and cats).</li>
<li>On October 21, the company released strong Q1 trading update, as Dechra continued to outperform the sector and benefit from secular growth in the companion animal market.</li>
<li>Dechra, with the highest revenue exposure to companion animals, will continue to benefit from the favorable pet market dynamics including continued increased spending on pets and growing pet ownership.</li>
</ul>



Dechra Pharmaceuticals (DPH LN) is a leading global specialty veterinary pharmaceuticals company, with the primary focus on companion animals (dogs and cats).
On October 21, the company released strong Q1 trading update, as Dechra continued to outperform the sector and benefit from secular growth in the companion animal market.
Dechra, with the highest revenue exposure to companion animals, will continue to benefit from the favorable pet market dynamics including continued increased spending on pets and growing pet ownership.


Dechra Pharmaceuticals (DPH LN): A High-Quality Idea in Companion Animal Healthcare Space

United States

Elanco Animal Health Incorporated operates as an animal health care company. The Company develops, manufactures, and markets products for companion and food animals. Elanco Animal Health serves clients worldwide.

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Elanco Animal Health (ELAN US)

Elanco Animal Hlth Inc (ELAN) - Wednesday, Feb 7, 2024

Activist engagement from Sachem Head and a stock price trading at a wide discount to peers make Elanco an intriguing investment opportunity for...

Value Investors Club

Elanco Animal Health: Initiation Of Coverage - A Story Of Concentration on Pet Health and Livestock Sustainability! - Major Drivers

In Q4 2023, Elanco Animal Health reported a 5% constant currency revenue growth, driven by innovations, the strength of the farm animal business,...

Baptista Research

Dechra Pharmaceuticals (DPH LN): Best Case Scenario Offers 10% Upside Potential

Dechra received takeover offer from private equity firm EQT for £40.70 per share all-cash deal. Current price implies ~10% spread. EQT has until 11...

Tina Banerjee

Earnings Quality Short Candidates: ZoomInfo, Gogo, Elanco Animal Hlth, Sonos, Energizer

Earnings Quality shorts lead to idiosyncratic alpha. Today, we show our model rankings and highlight ZoomInfo, Gogo, Elanco Animal Hlth, Sonos,...

Eric Fernandez, CFA

Dechra Pharmaceuticals (DPH LN): A High-Quality Idea in Companion Animal Healthcare Space

Dechra Pharmaceuticals is a leading global specialty veterinary pharmaceuticals company. The company should continue to benefit from the favorable...

Tina Banerjee

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