Leerink downgraded Zoetis (ZTS) to Market Perform from Outperform with a price target of $155, down from $180. The firm is now less positive on the company’s growth prospects over the next several years due to rising competition in the legacy dermatology business and a Librela launch “that appears to have lost momentum.” Zoetis will launch new products and grow sales going forward, but at a slower rate when factoring in increased competition from Elanco Animal Health (ELAN) and Merck (MRK) in dermatology and parasiticides, the analyst tells investors in a research note. As such, it sees a more balanced risk/reward profile for the stock going forward.
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