Shares in ECO Animal Health (EAH:AIM) rallied after the veterinary products specialist said FY26 earnings will be ‘materially ahead’ of expectations. The ‘beat’ reflects the ‘continued strong momentum’ and improved margins seen in H2.
ECO is a fast-growing global animal health company headquartered in London. The David Hallas-led outfit develops and markets veterinary pharmaceuticals globally. Lead product Aivlosin is an antibiotic that treats enteric and respiratory diseases in pigs and poultry.
Healthy momentum
ECO expects FY26 results to beat consensus revenue and adjusted EBITDA expectations of £83.5 million and £7.6 million. H2 revenue growth proved ‘particularly strong’ in North America and Latin America.
Furthermore, ECO expects to report improved gross margins thanks to improved product pricing and cost of goods sold.
Poultry progress
ECO recently announced that the USDA had delivered a favourable safety assessment of ECOVAXXIN MG. This is the company’s live poultry vaccine targeting Mycoplasma gallisepticum.
This bacterial pathogen is responsible for diseases in chickens and turkeys. USDA acceptance of the ECOVAXXIN MG safety data represents an important step towards securing US marketing authorisation.
Why analysts are bullish
‘Our previous FY26 adjusted EBITDA estimate was £8 million,’ said Equity Development.
‘We raise this to £8.2 million, implying a 9.5% margin and 12% year-on-year growth. With the continued momentum reported across the group’s markets for its core earnings driver, Aivlosin, we raise our fair value to 180p.’
Cavendish upgraded its FY26 sales and EBITDA estimates to £86 million and £8.4 million. Analyst Mike Mitchell upped his target price by 10% to 165p.
Read the press release here: https://ecoanimalhealth.com/investors/regulatory-news/
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