Analyst Jonathan Block of Stifel Nicolaus maintained a Buy rating on Zoetis (ZTS – Research Report), retaining the price target of $180.00.
Jonathan Block has given his Buy rating due to a combination of factors that highlight Zoetis’ strong market position and growth potential. The company’s top products have demonstrated impressive year-over-year growth, with the top five products alone accounting for a significant portion of the revenue and showing growth rates well above the company’s overall revenue increase. This indicates that Zoetis’ success is not limited to a few offerings but is spread across a diverse product range.
Additionally, the top ten products have shown a robust increase in sales, further solidifying the company’s market presence. Despite some challenges in specific segments, such as the decline in sales from products outside the top 20, Zoetis’ ability to maintain a flat SG&A as a percentage of sales and manage its operational costs effectively supports its financial health. These factors combined suggest a positive outlook for Zoetis, justifying the Buy rating.
In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $200.00 price target.