Zoetis (ZTS – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Michael Ryskin from Bank of America Securities reiterated a Buy rating on the stock and has a $200.00 price target.
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Michael Ryskin has given his Buy rating due to a combination of factors including Zoetis’s solid financial performance and promising growth prospects. The company reported strong fourth-quarter results, with revenue growing by 6% year-over-year, and even higher at 9% when excluding the impact of a divestment. Despite a slightly lower-than-expected guidance for fiscal year 2025, the operational revenue growth is anticipated to be between 6-8%, with a margin expansion that is expected to contribute to a solid adjusted EPS.
Management’s confidence in key product lines also supports this positive outlook, with expectations of double-digit revenue contributions from major franchises such as dermatology, parasiticides, and osteoarthritis. Additionally, Ryskin notes Zoetis’s position as a market leader in an industry characterized by sustainable growth drivers. The price objective is set at $200, reflecting an updated valuation based on future earnings, and considering the company’s strong position despite potential competitive pressures.
In another report released on February 12, Barclays also maintained a Buy rating on the stock with a $242.00 price target.