Valuation of Zoetis: The fair value of Zoetis is estimated at US$177, indicating that the current share price of US$121 suggests a potential undervaluation of 32%.
Discounted Cash Flow Analysis: A two-stage Discounted Cash Flow (DCF) model was used to estimate the intrinsic value, taking into account future cash flows and a conservative growth rate for terminal value.
Financial Strengths and Weaknesses: Zoetis shows strong earnings growth and well-covered debt and dividends, but its dividend yield is low compared to top competitors in the pharmaceuticals market.
Investment Considerations: While the DCF model provides insights into valuation, it is important to consider other factors such as market risks, future earnings growth compared to peers, and alternative investment options.
Wall Street analysts forecast ZTS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZTS is 154.20 USD with a low forecast of 130.00 USD and a high forecast of 200.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
Wall Street analysts forecast ZTS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZTS is 154.20 USD with a low forecast of 130.00 USD and a high forecast of 200.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 124.400
Low
130.00
Averages
154.20
High
200.00
Current: 124.400
Low
130.00
Averages
154.20
High
200.00
Piper Sandler
David Westenberg
Overweight -> Neutral
downgrade
$190 -> $135
2026-01-22
New
Reason
Piper Sandler
David Westenberg
Price Target
$190 -> $135
AI Analysis
2026-01-22
New
downgrade
Overweight -> Neutral
Reason
Piper Sandler analyst David Westenberg downgraded Zoetis to Neutral from Overweight with a price target of $135, down from $190.
Piper Sandler
Overweight -> Neutral
downgrade
$190 -> $135
2026-01-22
New
Reason
Piper Sandler
Price Target
$190 -> $135
2026-01-22
New
downgrade
Overweight -> Neutral
Reason
Piper Sandler downgraded Zoetis to Neutral from Overweight with a price target of $135, down from $190. The firm continues to like Zoetis' portfolio over the long term, but is not comfortable with estimates over the next couple of years until it sees some of the company's innovation hitting the market. Zoetis "is in an innovation air pocket that could last one to two years," the analyst tells investors in a research note. Further, Piper does not believe the current consumer spending environment supports the price versus value the company's 2026 launches provide.
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Morgan Stanley
Overweight
downgrade
$175 -> $160
2025-12-18
Reason
Morgan Stanley
Price Target
$175 -> $160
2025-12-18
downgrade
Overweight
Reason
Morgan Stanley lowered the firm's price target on Zoetis to $160 from $175 and keeps an Overweight rating on the shares. For healthcare technology and providers, the firm sees an "attractive backdrop for alpha-generation opportunities" in 2026, the analyst tells investors. Meanwhile, managed care stocks have underperformed in 2025 and are facing "another year of unprecedented policy, reimbursement, and utilization headwinds," the analyst added in a year-ahead outlook note for the Healthcare Services group.
BofA
Buy -> Neutral
downgrade
$165 -> $135
2025-12-15
Reason
BofA
Price Target
$165 -> $135
2025-12-15
downgrade
Buy -> Neutral
Reason
BofA downgraded Zoetis to Neutral from Buy with a price target of $135, down from $165.
About ZTS
Zoetis Inc. is a global animal health company. The Company is focused on the discovery, development, manufacture and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests and precision animal health. The Company operates through two segments: the United States (U.S.) and International. Within each of these operating segments, it offers a diversified product portfolio, including parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, other pharmaceutical, and animal health diagnostics, for both companion animal and livestock customers. It directly markets its products in approximately 45 countries across North America, Europe, Africa, Asia, Australia and South America. The Company is engaged in commercializing products across eight species: dogs, cats and horses (collectively, companion animals) and cattle, poultry, swine, fish and sheep (collectively, livestock).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
