Mark Massaro, an analyst from BTIG, reiterated the Buy rating on Zoetis. The associated price target remains the same with $160.00.
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Mark Massaro has given his Buy rating due to a combination of factors that highlight Zoetis’s strategic positioning and growth potential in the animal health market. Despite a recent pullback in shares and some investor disappointment over the lack of immediate revenue projections from their R&D pipeline, Zoetis has outlined a robust roadmap with significant long-term opportunities. The company is poised to expand its total addressable market by over $5 billion with new assets in chronic kidney disease, oncology, and cardiology expected to contribute significantly from 2027 onwards.
Furthermore, Zoetis is capitalizing on favorable market trends, such as the anticipated doubling of the animal health market by 2035, driven by factors like increased pet ownership and medicalization. The upcoming launch of Lenivia, a monoclonal antibody for osteoarthritis pain in dogs, and advancements in oncology and dermatology products are expected to drive growth. Additionally, the recovery in the livestock segment and strategic vaccine expansions position Zoetis well for future success. Massaro’s valuation of Zoetis at a $160 price target reflects confidence in these growth drivers and the company’s ability to navigate competitive challenges.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $165.00 price target.