Piper Sandler maintains Overweight rating on Zoetis stock amid competition

Published 02/07/2025, 15:32
Piper Sandler maintains Overweight rating on Zoetis stock amid competition

Investing.com - Piper Sandler has reiterated an Overweight rating on Zoetis Inc . (NYSE:ZTS) with a price target of $210.00, according to a research note released Wednesday. The target aligns with the broader analyst consensus, as InvestingPro data shows analysts maintain a "Strong Buy" recommendation with targets ranging from $160 to $238.

The firm’s analysis suggests that new competition in Zoetis’ two largest franchises—dermatology and broad spectrum parasiticides—is unlikely to negatively impact the company’s 2025 guidance.

Piper Sandler’s research indicates that while Elanco has achieved a successful launch with Credelio Quattro, this new product has primarily helped expand the overall market rather than taking significant share from Zoetis.

The investment firm conducted checks with 22 corporate groups regarding Merck (NSE:PROR)’s anticipated US launch of dermatology product NUMELVI, finding that the launch might occur later this year but with most marketing efforts planned for 2026.

Despite potential softness in Librela, one of Zoetis’ products, Piper Sandler believes the company could still exceed financial expectations based on the strength of its core franchises. This optimism is supported by six analysts recently revising their earnings estimates upward, according to InvestingPro data.

In other recent news, Zoetis Inc. reported a strong financial performance for Q1 2025, surpassing analysts’ expectations with earnings per share of $1.48 and revenue of $2.22 billion, both exceeding forecasts. The company achieved a 9% year-over-year operational organic revenue growth, driven by robust performance in key product lines like Simparica and OA pain monoclonal antibodies. BTIG maintained a Buy rating on Zoetis, with a $200 price target, citing the company’s potential for further global market penetration. Conversely, UBS lowered its price target for Zoetis to $170, maintaining a Neutral rating due to weaker-than-expected sales trends in certain product lines. Leerink Partners also adjusted its price target to $180, maintaining an Outperform rating, while acknowledging mixed quarterly results for Zoetis. Additionally, Zoetis appointed Dr. Mark Stetter to its Board of Directors, enhancing its expertise in veterinary medicine. Despite these developments, Zoetis is facing challenges such as potential tariff impacts and competition in key markets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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