Market's view on Eco Animal
Published on April 2024
- Stock watchers have noted Eco Animal Health’s (EAH) revenue forecast to be near £90m, surpassing previous expectations, with a significant year-end cash position despite ongoing investment in R&D.
- Observations were made on the firm’s performance against the backdrop of stable investments in R&D, which are crucial for future revenue streams.
- Concerns were raised about the share price potentially being held back by significant shareholders selling their stakes.
- Positive sentiments were expressed towards the disposal of non-core products, such as ECOmectin® Horsepaste, to streamline focus on core areas like treatments for pigs and poultry.
- There are predictions of potential share price increases following share buybacks and upcoming positive financial disclosures.
- Analysts have highlighted EAH’s resilience in maintaining robust sales despite challenges in the pork market, particularly in China.
- The expected approval of Mycoplasma poultry vaccines was identified as a potential catalyst for future growth and revaluation of the company’s stock closer to industry peers.
- Some stock watchers are cautious, commenting on the political risks and valuation metrics like P/EG ratios, indicating potential overvaluation concerns.