Eco Animal Share Price (EAH)

AnimalCare (ANCR) being acquired by private equity, Charterhouse. Announced yesterday. At first glance it looks to be a forward EV/EBITDA multiple of 12-13x.

Meanwhile EAH trades on roughly 6x, and that is not ascribing value to the vaccines which are not currently generating revenue or profit, and in fact are depressing profits...

Shows the qualities of the sector, and what is possible when the market and industry starts to buy into the vaccine pipeline.

These should be 150p+ easily. 200p+ medium term if the vaccines deliver.

Https://www.investorschronicle.co.uk/content/613b5bd5-6059-4c06-ae0d-bf3ab25ba2a6#mshktavp

Analysts at Singer Capital Markets increased their target price to 273p (from 257p) at the same time. The brokerage highlighted that after backing out R&D spend on new products the market is valuing the “core business at just 2.9 times enterprise valuation to cash profit with a 16 per cent free cash flow yield.”

So, with the group hitting regulatory milestones ahead of the launch of its first wave of new vaccines, this looks an opportune juncture to exploit the cheap valuation of the shares before the vaccines hit the market. On a conservative basis, the shares warrant a valuation at least in line with net asset value after accounting for minority interests, suggesting at least 130p a share, and materially higher in the likely scenario that the vaccines business gains traction. Buy.

"FY26 trading update: adj. EBITDA materially ahead" - new research note freely accessible here: https://www.equitydevelopment.co.uk/research/fy26-trading-update-adj.-ebitda-materially-ahead

- Revenue +8% YoY; FY26E raised to £86.0m (+3%)

- North America lifted to £23.0m (+7% YoY); Latin America to £16.7m (+2%, reversing an 18% FY25 decline)

- Gross margin nudged up to 45.5% on better pricing and input costs

- Adj. EBITDA "materially ahead" of expectations; raised to £8.2m (12% YoY growth, 9.5% margin)

- Forecasts raised across all three years

- ECOVAXXIN® MS commercial launch across key European markets in 2026/27; peak revenue potential £22.2m

- ECOVAXXIN® MG also in pipeline; peak revenue potential ~£10m

- Fair Value raised to 180p/share — FY27 EV/EBITDA of 5.1x vs peer average of 13.5x

"ECOVAXXIN® MG receives US safety validation" - link to new research (freely accessible here): https://www.equitydevelopment.co.uk/research/ecovaxxin-mg-receives-us-safety-validation

Following the recent announcement of plans for commercialisation of ECOVAXXIN® MS, ECO Animal Health announces that the United States Department of Agriculture (USDA) has delivered a favourable safety assessment of ECOVAXXIN® MG, the Company’s live poultry vaccine targeting Mycoplasma gallisepticum.

The USDA review and acceptance of ECOVAXXIN® MG safety data represents an important step towards securing marketing authorisation for the vaccine in the United States.

EAH has estimated that ECOVAXXIN® MG has the potential to contribute peak revenue of c.£10.0m by 2036 as part of a portfolio of new products under development of which ECOVAXXIN® MG stands in the ‘late stage’, i.e. early contributor segment. The USDA safety approval acceptance adds further momentum to the path toward commercialisation for the vanguard of nine major products under development.

Our fair value remains at 153p/share.

"ECOVAXXIN® MS commercialisation begins" - new research note freely accessible here: https://www.equitydevelopment.co.uk/research/ecovaxxin-ms-commercialisation-begins

Following the announcement in December 2025 of European Commission marketing authorisation, Eco Animal Health has announced its commercialisation roadmap for deployment of ECOVAXXIN® MS across key European territories in 2026/27.

The Group notes that it expects sales of ECOVAXXIN® MS to be immediately margin accretive and, from FY28, make a “material contribution to EBITDA”. In line with Group estimates, we expect peak ECOVAXXIN®MS revenue of c.£22m1 by 2031. ECO has outlined a clear path towards commercial contribution from ECOVAXXIN® MS - the first in a pipeline of nine major new products under development. Consequently, we are now comfortable in extending our outlook to FY28E. Our Fair Value increases to 153p/share.