JPMorgan analyst Chris Schott continues to see several near-term overhangs in the Elanco Animal Health (ELAN) story, including the unknown divestiture requirements, the equity issuance for Bayer transaction, and ASF, Rumensin and Simparica Trio sales headwinds. However, with shares trading at a 30% discount to peer Zoetis (ZTS), these overhangs as well reflected in valuation, Schott tells investors in a research note. He sees a "very attractive setup" for Elanco shares looking out to 2020 and beyond. The analyst keeps an Overweight rating on the name with a $38 price target.