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Expert Outlook: Zoetis Through The Eyes Of 4 Analysts

Author: Benzinga Insights | April 02, 2024 10:00am

Ratings for Zoetis (NYSE:ZTS) were provided by 4 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 2 0 0 0
Last 30D 1 0 0 0 0
1M Ago 0 0 0 0 0
2M Ago 0 2 0 0 0
3M Ago 1 0 0 0 0

The 12-month price targets, analyzed by analysts, offer insights with an average target of $225.25, a high estimate of $260.00, and a low estimate of $195.00. Surpassing the previous average price target of $218.75, the current average has increased by 2.97%.

price target chart

Interpreting Analyst Ratings: A Closer Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Zoetis. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Jonathan Block Stifel Lowers Buy $195.00 $215.00
David Westenberg Piper Sandler Raises Overweight $220.00 $215.00
Balaji Prasad Barclays Raises Overweight $260.00 $255.00
Nathan Rich Goldman Sachs Raises Buy $226.00 $190.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Zoetis. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Zoetis compared to the broader market.
  • Price Targets: Gaining insights, analysts provide estimates for the future value of Zoetis's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Zoetis's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Zoetis analyst ratings.

All You Need to Know About Zoetis

Zoetis sells anti-infectives, vaccines, parasiticides, diagnostics, and other health products for animals. The firm earns roughly 35% of total revenue from production animals (cattle, pigs, poultry, and so on), and nearly 65% from companion animal (dogs, horses, cats) products. Its U.S. business is heavily skewed toward companion animals, while its international business is slightly skewed toward production animals. The firm has the largest market share in the industry and was previously Pfizer's animal health unit.

Financial Insights: Zoetis

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, Zoetis showcased positive performance, achieving a revenue growth rate of 8.48% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: Zoetis's net margin is impressive, surpassing industry averages. With a net margin of 23.72%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Zoetis's ROE stands out, surpassing industry averages. With an impressive ROE of 10.42%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Zoetis's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.7%, the company showcases efficient use of assets and strong financial health.

Debt Management: Zoetis's debt-to-equity ratio surpasses industry norms, standing at 1.35. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Analyst Ratings: Simplified

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: ZTS

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