Positive Growth Prospects and Revenue Upgrades Drive Buy Rating for Zoetis

Analyst Steve Scala of TD Cowen maintained a Buy rating on Zoetis (ZTS – Research Report), with a price target of $202.00.

Steve Scala has given his Buy rating due to a combination of factors that reflect positive growth prospects for Zoetis. The company’s revenue estimates for 2025 have been increased, driven by favorable foreign exchange trends and higher expectations for the Simparica Trio product, despite some offset from lower forecasts for other segments like Key Derm and OA Pain. This adjustment in revenue projections aligns with a projected 13% growth for Zoetis’s key franchises, surpassing the guidance of double-digit growth.
Additionally, the earnings per share (EPS) estimate for 2025 has been raised, reflecting the company’s strong performance in the first quarter. Although the operating income margin remains unchanged, the overall financial outlook for Zoetis appears robust. The analyst also notes that while there are some adjustments in the estimates for certain products, the overall market model updates support the positive trajectory of the company’s financial performance.

According to TipRanks, Scala is a 4-star analyst with an average return of 5.6% and a 56.83% success rate. Scala covers the Healthcare sector, focusing on stocks such as Elanco Animal Health, Novavax, and AstraZeneca.

In another report released on May 14, BTIG also reiterated a Buy rating on the stock with a $200.00 price target.