Zoetis Inc. (NYSE:ZTS) Stock Rated "Hold" by Sell-Side Brokerages

Key Points

• Zoetis has a consensus “Hold” rating among 20 analysts: 11 holds, seven buys, and two sells. The average 12-month price target is $98.07.
• Recent analysts generally lowered their price targets, including UBS and Stifel to $80, while Goldman Sachs initiated coverage with a neutral rating and a $74 target; JPMorgan maintained an overweight rating with a $115 target.
• Zoetis reported quarterly EPS of $1.87, slightly above estimates, on revenue of $2.47 billion, while revenue declined 0.2% year over year. The company also declared a $0.53 quarterly dividend, representing a 2.6% yield.

Shares of Zoetis Inc. (NYSE:ZTS - Get Free Report) have earned an average rating of "Hold" from the twenty ratings firms that are presently covering the firm, Marketbeat.com reports. Two investment analysts have rated the stock with a sell recommendation, eleven have given a hold recommendation and seven have assigned a buy recommendation to the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $98.07.

Several research analysts recently weighed in on ZTS shares. UBS Group decreased their price objective on shares of Zoetis from $85.00 to $80.00 and set a "neutral" rating on the stock in a research report on Friday, August 7th. Weiss Ratings reiterated a "sell (d)" rating on shares of Zoetis in a research report on Wednesday, September 9th. The Goldman Sachs Group began coverage on shares of Zoetis in a research report on Friday, October 16th. They set a "neutral" rating and a $74.00 target price for the company. Stifel Nicolaus cut their price target on shares of Zoetis from $85.00 to $80.00 and set a "hold" rating for the company in a research note on Thursday, August 20th. Finally, JPMorgan Chase & Co. decreased their price target on shares of Zoetis from $130.00 to $115.00 and set an "overweight" rating on the stock in a report on Friday, August 7th.

Zoetis Price Performance

Zoetis stock opened at $81.00 on Monday. Zoetis has a 52 week low of $68.77 and a 52 week high of $147.93. The business has a 50-day simple moving average of $74.62 and a 200 day simple moving average of $81.94. The company has a quick ratio of 1.84, a current ratio of 3.08 and a debt-to-equity ratio of 2.87. The stock has a market cap of $33.47 billion, a price-to-earnings ratio of 13.34, a PEG ratio of 1.20 and a beta of 0.74.

Zoetis (NYSE:ZTS - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $1.87 earnings per share for the quarter, topping analysts' consensus estimates of $1.85 by $0.02. Zoetis had a return on equity of 74.89% and a net margin of 27.49%. The business had revenue of $2.47 billion for the quarter, compared to analyst estimates of $2.50 billion. During the same period in the prior year, the company earned $1.76 EPS. The company's quarterly revenue was down .2% compared to the same quarter last year. Zoetis has set its FY 2026 guidance at 6.150-6.250 EPS. On average, research analysts forecast that Zoetis will post 6.14 earnings per share for the current fiscal year.

Zoetis Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Friday, October 30th will be issued a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend is Friday, October 30th. Zoetis's payout ratio is currently 34.93%.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in ZTS. BlackRock Inc. lifted its stake in Zoetis by 10.8% during the second quarter. BlackRock Inc. now owns 39,430,181 shares of the company's stock worth $2,833,453,000 after purchasing an additional 3,845,869 shares during the last quarter. State Street Corp increased its position in shares of Zoetis by 1.8% during the 2nd quarter. State Street Corp now owns 19,667,723 shares of the company's stock valued at $1,413,323,000 after purchasing an additional 343,322 shares during the last quarter. Deutsche Bank AG raised its holdings in shares of Zoetis by 5.8% during the 2nd quarter. Deutsche Bank AG now owns 5,851,737 shares of the company's stock valued at $420,506,000 after buying an additional 319,709 shares in the last quarter. Bank of America Corp DE raised its holdings in shares of Zoetis by 7.3% during the 1st quarter. Bank of America Corp DE now owns 4,831,652 shares of the company's stock valued at $571,150,000 after buying an additional 327,313 shares in the last quarter. Finally, Van ECK Associates Corp raised its holdings in shares of Zoetis by 7.7% during the 2nd quarter. Van ECK Associates Corp now owns 4,252,140 shares of the company's stock valued at $305,559,000 after buying an additional 303,395 shares in the last quarter. Institutional investors own 92.80% of the company's stock.

Zoetis Company Profile

Zoetis Inc is a global animal health company that develops, manufactures and markets medicines, vaccines, diagnostics, genetic products and related services for animals. Its offerings support the prevention, diagnosis and treatment of disease in both companion animals, including dogs, cats and horses, and livestock such as cattle, swine, poultry and fish.

The company's product portfolio includes prescription medicines, parasiticides, vaccines, veterinary diagnostics and animal genetics.

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