2Q Animal Health Preview: Sentiment, Setups and Signposts

Research evidence excerpt

2Q Animal Health Preview: Sentiment, Setups and Signposts

tter market share retention. Our 2Q Companion Animal forecast is in-

line with the Street; we forecast 2Q Livestock 2% ahead. Our 2Q EPS is

$1.84, $0.02 under consensus. For FY26E, we model organic operational revenue

growth of ~2% at the bottom end of company guidance of 2-5%.

Reducing PT To $85 From $99: Our new $85 PT is now anchored to a 10x EV/

EBITDA multiple (from 12x) as we believe valuations will remain at the midpoint of

the 8-12x EBITDA range of large-cap pharma companies experiencing limited

revenue growth.

Flash Survey: Stable To Better Macro; Positive For Zenrelia; Improving inVue

Traction Though Purchasing Plans Mixed

We surveyed 21 US-based vets. While all vets were not affiliated with a corporate

practice today, we view input as valuable assuming independent practices have

more control over purchasing decisions on pharmaceuticals and diagnostics.

Vet Visit Volumes Up In 2Q26; Anticipate Flat To Modestly Up In 3Q26:

2Q26 trends were stable-to-positive, and 3Q26 is expected to be flat to modestly

higher.

Zenrelia Interest Builds In Derm; Numelvi Stocking Interest Appears Low:

Apoquel remains dominant, but Zenrelia interest is rising and Numelvi has entered

the mix (5% share among vets surveyed). Zenrelia interest is building, with 45%

seeing better outcomes and planning to shift more usage toward Zenrelia. On

plans for Numelvi, Numelvi stocking interest has cooled versus our April 2026

survey run, with only 8% likely and 0% very likely to stock it in July 2026, versus

58% unlikely/very unlikely.

NexGard PLUS Share Builds; Credelio Quattro Share Stable But Quattro

Users Anticipate Continued Stocking: Simparica Trio still leads, while NexGard

PLUS gained share meaningfully.