Analyst Steve Scala of TD Cowen maintained a Buy rating on Zoetis (ZTS – Research Report), with a price target of $214.00.
Steve Scala’s rating is based on a thoughtful evaluation of Zoetis’s financial prospects and product pipeline. After a solid first quarter, the company anticipates strong adoption of its new products, which support Scala’s positive outlook. His analysis includes revised estimates, maintaining an expected compound annual growth rate (CAGR) for sales and earnings per share (EPS) at 6% and 9% respectively through 2023 to 2030. This indicates a clear pathway for sustained growth over the long term.
For the year 2024, despite a slight adjustment to earlier estimates, Scala’s revenue projection aligns with the company’s guidance and consensus, reflecting confidence in Zoetis’s dermatology and parasiticide franchises. This optimism is tempered slightly by foreign exchange headwinds. Additionally, Scala anticipates an uptick in operating expenses due to increased sales, general, and administrative (SG&A) spending, necessary for defending key brands and supporting new launches. Moving into the period from 2025 to 2030, Scala has increased his forecasts for specific franchises and expects robust performance from the company’s osteoarthritis pain monoclonal antibodies, based on positive launch metrics and expert opinion, further justifying the Buy rating.
In another report released on May 8, HSBC also maintained a Buy rating on the stock with a $225.00 price target.
Based on the recent corporate insider activity of 73 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ZTS in relation to earlier this year.
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Zoetis (ZTS) Company Description:
Founded in 1952, New Jersey-based Zoetis, Inc. is the world’s largest manufacturer of medicine and vaccinations for pets and livestock in the United States and internationally. Its products are complemented by diagnostic products, genetic tests, bio devices and services.
