Analyst Michael Ryskin of Bank of America Securities maintained a Buy rating on Zoetis, retaining the price target of $200.00.
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Michael Ryskin has given his Buy rating due to a combination of factors influencing Zoetis’s market position. Despite the recent FDA approval of Merck’s Bravecto Quantum, which could be seen as a potential competitor, Ryskin does not foresee a significant impact on Zoetis’s market share. This is largely because Zoetis’s Simparica Trio, which offers comprehensive protection including heartworm, is already a dominant product in the market, accounting for a substantial portion of the company’s revenues.
Moreover, the complexities associated with Bravecto Quantum, such as the need for veterinary visits for administration and the variability in dosing duration, may limit its uptake in the US. Additionally, Zoetis stands to benefit from any combination treatments involving Quantum, as they offer ProHeart, an injectable heartworm preventative. These factors, combined with the logistical challenges of Quantum’s distribution and administration, support Ryskin’s confidence in maintaining a Buy rating for Zoetis.
According to TipRanks, Ryskin is a 3-star analyst with an average return of 1.3% and a 54.58% success rate. Ryskin covers the Healthcare sector, focusing on stocks such as Thermo Fisher, Danaher, and Waters.
In another report released on July 2, Piper Sandler also maintained a Buy rating on the stock with a $210.00 price target.