William Blair analyst Brandon Vazquez has reiterated their bullish stance on ZTS stock, giving a Buy rating yesterday.
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Brandon Vazquez has given his Buy rating due to a combination of factors related to Zoetis’s innovation and growth potential. The company recently held an innovation day, highlighting its robust pipeline and research capabilities, particularly in areas such as CKD, oncology, and cardiology. These updates suggest that Zoetis’s innovation engine remains strong, despite a temporary setback in 2025 linked to the underperformance of Librela’s commercialization.
Despite the near-term challenges, Vazquez points out that Zoetis has 12 potential blockbuster products in development, which could significantly boost its future performance. The company’s current valuation, at 18.5 times the projected 2026 earnings per share, is considered attractive, especially as it is at a low point compared to the past decade. While the stock may remain stable in the short term as investors await the launch of new products in late 2026 and 2027, Vazquez believes the long-term risk/reward profile is favorable, justifying the Buy rating.
Vazquez covers the Healthcare sector, focusing on stocks such as Ceribell, Inc., Zoetis, and Penumbra. According to TipRanks, Vazquez has an average return of -3.9% and a 40.70% success rate on recommended stocks.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $165.00 price target.