Panmure Liberum repeated a Buy rating on ECO Animal Health (AIM:EAH) and raised its price target to 217p from 185p, after the animal health specialist posted results ahead of already-upgraded expectations.
The broker's bullish call focuses on the company's Aivlosin franchise, which delivered 14% constant exchange rate revenue growth and underpinned a 16% rise in EBITDA alongside a strong cash beat, while the company continues to self-fund a development pipeline that Panmure Liberum expects to start contributing materially from the 2028 financial year.
The analyst flagged that ECO is hitting all of its key near-term pipeline milestones, yet argued the share price attaches no value to that pipeline at all.
"ECO looks like a steal at this price", the broker said, suggesting investors weighing where to redeploy proceeds from the AnimalCare take-private look at ECO as a natural home, with pipeline progress through the coming periods the catalyst to watch.
