We initiate coverage on Zoetis with a Strong Buy rating and a $219.26 price target, driven by explosive growth in companion animal products and structural margin expansion. Zoetis's leadership in companion animal therapeutics, particularly with Librela and Simparica, supports our above-consensus EPS forecasts of $6.12 for FY25 and $6.80 for FY26. The divestiture of lower-margin feed additives enables strategic R&D reinvestment, bolstering innovation and operational growth, while maintaining competitive moats in key markets.
Get a deeper insight into the potential performance of Zoetis (ZTS) for the quarter ended March 2025 by going beyond Wall Street's top -and-bottom-line estimates and examining the estimates for some of its key metrics.
Zoetis (ZTS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
ZTS' higher companion animal product sales are likely to have driven revenues in first-quarter 2025 in both the United States and International segments.
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In the most recent trading session, Zoetis (ZTS) closed at $152.30, indicating a +0.92% shift from the previous trading day.
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Shares in animal pharmaceutical company Zoetis (ZTS 0.14%) have been under a cloud since the release of the company's fourth-quarter earnings report in mid-February. The Q4 numbers were fine, but the company's revenue guidance fell short of expectations.
Zoetis is currently cheap from a historical perspective, presenting a potential buying opportunity. The company operates in a growing animal healthcare market, benefiting from trends like pet humanization and medicalization, ensuring long-term growth. ZTS has a strong track record of market outperformance, impressive margins, and a high ROIC, making it a high-quality company.
Zoetis (ZTS) closed the most recent trading day at $163.03, moving -0.08% from the previous trading session.
The latest trading day saw Zoetis (ZTS) settling at $160.06, representing a -1% change from its previous close.
The recent divestiture of the MFA segment improves margins and returns on capital. Zoetis is focusing on more profitable segments like genetics and companion animals. The recently updated Librela label includes adverse effects and urges practitioners to discuss potential adverse reactions with clients.