Zoetis (NYSE:ZTS) Sets New 1-Year Low on Analyst Downgrade

Key Points

• Zoetis hit a new 52-week low after JPMorgan cut its price target on the stock from $190 to $130, despite keeping an overweight rating. Shares fell to as low as $80.20 and last traded around $81.39.
• Several other analysts also turned more cautious, with UBS lowering its target to $99 and multiple firms cutting ratings or targets. Overall, Zoetis now carries a consensus Hold rating with an average price target of $141.25.
• The company’s latest earnings missed expectations, reporting $1.53 EPS versus the $1.60 consensus and revenue of $2.26 billion versus $2.30 billion expected. Zoetis still posted year-over-year revenue growth of 2.9% and reiterated FY2026 EPS guidance of $6.85 to $7.00.

Zoetis Inc. (NYSE:ZTS - Get Free Report) hit a new 52-week low on Monday after JPMorgan Chase & Co. lowered their price target on the stock from $190.00 to $130.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Zoetis traded as low as $80.20 and last traded at $81.3880, with a volume of 695332 shares changing hands. The stock had previously closed at $82.83.

A number of other research firms have also recently commented on ZTS. UBS Group lowered their price target on Zoetis from $130.00 to $99.00 and set a "neutral" rating for the company in a report on Friday. Piper Sandler reissued a "neutral" rating and set a $135.00 price target (down from $190.00) on shares of Zoetis in a report on Thursday, January 22nd. Weiss Ratings cut Zoetis from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, March 27th. Bank of America boosted their price target on Zoetis from $135.00 to $140.00 and gave the stock a "neutral" rating in a report on Friday, February 13th. Finally, Wall Street Zen cut Zoetis from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Seven analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Zoetis currently has an average rating of "Hold" and a consensus target price of $141.25.

Institutional Investors Weigh In On Zoetis

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. RFG Advisory LLC grew its position in Zoetis by 4.9% during the 4th quarter. RFG Advisory LLC now owns 1,708 shares of the company's stock worth $215,000 after acquiring an additional 80 shares during the last quarter. YANKCOM Partnership grew its position in Zoetis by 3.5% during the 4th quarter. YANKCOM Partnership now owns 2,402 shares of the company's stock worth $302,000 after acquiring an additional 81 shares during the last quarter. Evergreen Capital Management LLC grew its position in Zoetis by 3.3% during the 3rd quarter. Evergreen Capital Management LLC now owns 2,696 shares of the company's stock worth $394,000 after acquiring an additional 85 shares during the last quarter. Beese Fulmer Investment Management Inc. grew its position in Zoetis by 2.4% during the 3rd quarter. Beese Fulmer Investment Management Inc. now owns 3,672 shares of the company's stock worth $537,000 after acquiring an additional 85 shares during the last quarter. Finally, Quest 10 Wealth Builders Inc. grew its position in Zoetis by 4.7% during the 4th quarter. Quest 10 Wealth Builders Inc. now owns 1,904 shares of the company's stock worth $240,000 after acquiring an additional 86 shares during the last quarter. Institutional investors own 92.80% of the company's stock.

Zoetis Price Performance

The firm has a market cap of $33.82 billion, a P/E ratio of 13.38, a price-to-earnings-growth ratio of 1.29 and a beta of 0.87. The company has a current ratio of 3.15, a quick ratio of 1.91 and a debt-to-equity ratio of 2.80. The business has a 50-day moving average of $118.49 and a two-hundred day moving average of $123.70.

Zoetis (NYSE:ZTS - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $1.53 EPS for the quarter, missing analysts' consensus estimates of $1.60 by ($0.07). Zoetis had a net margin of 27.80% and a return on equity of 66.85%. The company had revenue of $2.26 billion during the quarter, compared to the consensus estimate of $2.30 billion. During the same quarter last year, the firm posted $1.48 EPS. The company's quarterly revenue was up 2.9% on a year-over-year basis. Zoetis has set its FY 2026 guidance at 6.850-7.000 EPS. On average, sell-side analysts anticipate that Zoetis Inc. will post 6.96 earnings per share for the current fiscal year.

Zoetis Company Profile

Zoetis Inc NYSE: ZTS is a global animal health company that develops, manufactures and markets a broad portfolio of products and services for companion animals and livestock. The company's offerings include pharmaceuticals, vaccines and biologics, parasiticides and anti-infectives, as well as diagnostic instruments, consumables and laboratory testing services. Zoetis serves the veterinary community, livestock producers and other animal-health customers with products designed to prevent, detect and treat disease and to support animal productivity and welfare.

Zoetis traces its roots to the animal health business of Pfizer and became an independent, publicly traded company following a 2013 separation and initial public offering.

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