Zoetis Inc reaches 20-day high amid positive drug approval news
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 24 2024
0mins
Should l Buy ZTS?
Source: Benzinga
Zoetis Inc's stock price increased by 3.00%, reaching a 20-day high, reflecting positive momentum in the market. This surge is attributed to the recent approval of Zoetis's Portela™ by Health Canada, designed to provide osteoarthritis pain relief for cats, marking a significant advancement in their product lineup. The approval not only enhances Zoetis's market position but also underscores its commitment to innovation in animal health, potentially driving future revenue growth.
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Analyst Views on ZTS
Wall Street analysts forecast ZTS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZTS is 154.20 USD with a low forecast of 130.00 USD and a high forecast of 200.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 126.730
Low
130.00
Averages
154.20
High
200.00
Current: 126.730
Low
130.00
Averages
154.20
High
200.00
About ZTS
Zoetis Inc. is a global animal health company. The Company is focused on the discovery, development, manufacture and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests and precision animal health. The Company operates through two segments: the United States (U.S.) and International. Within each of these operating segments, it offers a diversified product portfolio, including parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, other pharmaceutical, and animal health diagnostics, for both companion animal and livestock customers. It directly markets its products in approximately 45 countries across North America, Europe, Africa, Asia, Australia and South America. The Company is engaged in commercializing products across eight species: dogs, cats and horses (collectively, companion animals) and cattle, poultry, swine, fish and sheep (collectively, livestock).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
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- Market Competition Pressure: Despite competition from products like Apoquel, Zoetis still has significant market potential in the pet health sector, which is expected to drive the company's recovery in 2026.
- Regeneron Drug Expansion: Regeneron has gained approval for a higher-dose version of Eylea and expanded its indications, allowing it to serve a larger patient pool with a more convenient dosing schedule, enhancing its market competitiveness.
- Strong Growth Drivers: Regeneron's Dupixent remains a key growth driver, and the company's pipeline candidates in weight management will further bolster its market performance, with expectations of delivering market-beating returns.
See More
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- Stock Decline: Zoetis has seen its stock rise 480% since going public, but it has recently slid nearly 40%, reflecting underwhelming quarterly performances against a stretched valuation, with the current P/E ratio at a historic low of 21.
- R&D Potential: The company anticipates at least one major market approval annually over the next several years, with 12 new therapies having blockbuster potential, indicating a robust R&D pipeline.
- Market Opportunity: Zoetis's core R&D markets for chronic kidney failure, oncology, and cardiology are expected to represent a $5 billion market opportunity, compared to its annual sales of $9.3 billion, underscoring its leadership in the animal healthcare sector.
- Sustained Growth: Despite the stock decline, Zoetis has achieved an 8% annual sales growth since 2013, and it is expected to maintain this momentum, especially as the global animal healthcare market is projected to grow by 5% to 6% annually.
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