Investment Analysts’ Recent Ratings Changes for Zoetis (ZTS)

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A number of research firms have changed their ratings and price targets for Zoetis (NYSE: ZTS):

  • 11/2/2018 – Zoetis had its price target raised by analysts at JPMorgan Chase & Co. from $100.00 to $101.00. They now have an “overweight” rating on the stock.
  • 11/2/2018 – Zoetis was given a new $100.00 price target on by analysts at Morgan Stanley. They now have a “hold” rating on the stock.
  • 10/17/2018 – Zoetis had its “overweight” rating reaffirmed by analysts at Cantor Fitzgerald. They now have a $105.00 price target on the stock, up previously from $98.00. They wrote, “. We reiterate our Overweight rating and raise our 12-month PT for ZTS shares to $105 from $98. The increase in our PT is driven by multiple expansion. Given the company’s durable business model and the positive outlook for macro factors, we think ZTS’s multiple will hold and upwards earnings revisions should drive shares higher. We think ZTS’s multiple will be supported by: 1) its durable business model, 2) positive outlook for macro factors, and 3) solid execution by management. Upwards earnings revisions could come from: 1) higher-than- anticipated peak sales for new launches, 2) better-than-expected operating margins in 2018+, and 3) M&A.””
  • 10/17/2018 – Zoetis was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $100.00 price target on the stock. According to Zacks, “Zoetis’ companion animal business continues to perform well on higher international sales of Apoquel and Simparica. Growth from new parasiticide products, vaccines and strong dermatology portfolio has also boosted the top-line. The Abaxis acquisition will further strengthen the company’s presence in the animal health diagnostics market, a fast-growing portion of the animal health industry which should further boost sales. Moreover, Zoetis five-year collaboration agreement with Regeneron to research the use of latter’s monoclonal antibody therapeutics in animals and discover new veterinary treatments will further diversify the broad portfolio. Shares of Zoetis have outperformed the industry in the year so far. However, Zoetis faces stiff competition from companies like Merck Animal Health. Disease outbreak among animals is a material cause of concern for livestock products. Estimates are static ahead of Q3 results.”
  • 10/15/2018 – Zoetis was upgraded by analysts at JPMorgan Chase & Co. from a “neutral” rating to an “overweight” rating. They now have a $100.00 price target on the stock.
  • 10/5/2018 – Zoetis was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Zoetis’ companion animal business continues to perform well on higher international sales of Apoquel and Simparica.  Growth from new parasiticide products, vaccines and strong dermatology portfolio has also boosted the top-line. The Abaxis acquisition of will further strengthen the company’s presence in the animal health diagnostics market, a fast-growing portion of the animal health industry which should further boost sales. Moreover, Zoetis five-year collaboration agreement with Regeneron to research the use of latter’s monoclonal antibody therapeutics in animals and discover new veterinary treatments will further diversify the broad portfolio. Shares of Zoetis have outperformed the industry in the year so far. However, Zoetis faces stiff competition from companies like Merck Animal Health. Disease outbreak among animals is a material cause of concern for Zoetis’ livestock products.”
  • 10/1/2018 – Zoetis had its “buy” rating reaffirmed by analysts at Cantor Fitzgerald. They now have a $98.00 price target on the stock. They wrote, “We rate ZTS as 12-month price target of $98. We think the multiple will hold and upwards earnings revisions should drive shares higher. Valuation Summary We use a blend of DCF and multiples analysis (EV/EBITDA) to get to our 12-month price target of $98. The Disclosure Section may be found on pages 3 – 4.Valuation We use a blend of DCF and multiples analysis (EV/EBITDA) to get to our 12-month price target of $98.””
  • 9/10/2018 – Zoetis was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $101.00 price target on the stock. According to Zacks, “Zoetis’ companion animal business continues to perform well on higher international sales of Apoquel and Simparica.  Growth from new parasiticide products, vaccines and strong dermatology portfolio has also boosted the top-line. The Abaxis acquisition of will further strengthen the company’s presence in the animal health diagnostics market, a fast-growing portion of the animal health industry which should further boost sales. Moreover, Zoetis five-year collaboration agreement with Regeneron to research the use of latter’s monoclonal antibody therapeutics in animals and discover new veterinary treatments will further diversify the broad portfolio. Shares of Zoetis have outperformed the industry in the year so far. However, Zoetis faces stiff competition from companies like Merck Animal Health. Disease outbreak among animals is a material cause of concern for Zoetis’ livestock products.”

Zoetis stock opened at $92.76 on Wednesday. The company has a quick ratio of 2.63, a current ratio of 4.06 and a debt-to-equity ratio of 3.04. Zoetis Inc has a 52 week low of $67.76 and a 52 week high of $96.57. The firm has a market cap of $44.70 billion, a PE ratio of 38.65, a price-to-earnings-growth ratio of 1.74 and a beta of 0.97.

Zoetis (NYSE:ZTS) last posted its quarterly earnings results on Thursday, November 1st. The company reported $0.83 EPS for the quarter, topping analysts’ consensus estimates of $0.77 by $0.06. Zoetis had a return on equity of 75.51% and a net margin of 20.35%. The company had revenue of $1.48 billion during the quarter, compared to analysts’ expectations of $1.46 billion. During the same quarter in the previous year, the firm earned $0.65 EPS. Zoetis’s revenue was up 9.9% on a year-over-year basis. As a group, research analysts forecast that Zoetis Inc will post 3.1 EPS for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 3rd. Stockholders of record on Tuesday, November 20th will be issued a dividend of $0.126 per share. The ex-dividend date of this dividend is Monday, November 19th. This represents a $0.50 dividend on an annualized basis and a dividend yield of 0.54%. Zoetis’s dividend payout ratio (DPR) is currently 20.83%.

In related news, insider Catherine A. Knupp sold 46,816 shares of the business’s stock in a transaction on Wednesday, August 15th. The stock was sold at an average price of $90.84, for a total transaction of $4,252,765.44. Following the sale, the insider now owns 81,640 shares in the company, valued at approximately $7,416,177.60. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Roxanne Lagano sold 2,000 shares of the business’s stock in a transaction on Monday, October 1st. The stock was sold at an average price of $92.03, for a total value of $184,060.00. The disclosure for this sale can be found here. Insiders have sold a total of 200,201 shares of company stock worth $18,306,772 in the last 90 days. 0.35% of the stock is currently owned by corporate insiders.

A number of hedge funds have recently modified their holdings of ZTS. Sun Life Financial INC grew its position in shares of Zoetis by 604.3% in the 2nd quarter. Sun Life Financial INC now owns 1,310 shares of the company’s stock valued at $112,000 after buying an additional 1,124 shares during the last quarter. Signature Estate & Investment Advisors LLC bought a new stake in shares of Zoetis in the 3rd quarter valued at about $112,000. Migdal Insurance & Financial Holdings Ltd. grew its position in shares of Zoetis by 3,033.3% in the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 1,410 shares of the company’s stock valued at $120,000 after buying an additional 1,365 shares during the last quarter. Fort L.P. bought a new stake in shares of Zoetis in the 2nd quarter valued at about $121,000. Finally, Lenox Wealth Advisors LLC grew its position in shares of Zoetis by 259.4% in the 2nd quarter. Lenox Wealth Advisors LLC now owns 1,682 shares of the company’s stock valued at $143,000 after buying an additional 1,214 shares during the last quarter. Institutional investors and hedge funds own 89.68% of the company’s stock.

Zoetis, Inc discovers, develops and manufactures a portfolio of animal health medicines and vaccines. Its products are complemented by diagnostic products, genetic tests, bio devices and services. These are designed to meet the needs of veterinarians and the livestock farmers and companion animal. The firm provides its services though five categories namely, anti-invectives, vaccines, parasitic ides, medicated feed additives, and other pharmaceuticals.

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