William Blair analyst Brandon Vazquez has maintained their bullish stance on ZTS stock, giving a Buy rating on July 29.
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Brandon Vazquez has given his Buy rating due to a combination of factors including Zoetis’s strong financial performance in the second quarter. The company reported sales and earnings per share that exceeded market expectations by 2% and 8%, respectively. This was largely driven by robust organic growth in the companion animal segment, particularly in the U.S., despite facing increased competition in key areas.
Furthermore, Vazquez highlights that the raised full-year guidance and the company’s ability to maintain momentum in the U.S. market provide reassurance about Zoetis’s growth prospects. Although there are concerns regarding the decline in Librela sales and the impact of foreign exchange benefits, these are offset by the overall positive performance and strategic adjustments. With the stock trading at a reasonable valuation based on future earnings estimates, Vazquez maintains a positive outlook on Zoetis’s long-term growth potential.
In another report released on July 29, Morgan Stanley also maintained a Buy rating on the stock with a $221.00 price target.