UBS Keeps Neutral Rating on Zoetis and Reduces Price Target to $158
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 20 2025
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Should l Buy ZTS?
Source: Benzinga
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Analyst Views on ZTS
Wall Street analysts forecast ZTS stock price to rise
12 Analyst Rating
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 129.760
Low
130.00
Averages
154.20
High
200.00
Current: 129.760
Low
130.00
Averages
154.20
High
200.00
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.
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- Executive Representation: CFO Wetteny Joseph will represent the company, indicating the management's commitment to industry developments and strengthening investor confidence through direct engagement.
- Live Webcast: The event will feature a live audio webcast accessible via the Zoetis investor website, ensuring transparency and fostering interaction with stakeholders.
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See More
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- Stable Sales Growth: The company achieved sales of $2.387 billion, a 3% year-over-year increase, nearly aligning with the consensus of $2.36 billion, reflecting stable performance across multiple product lines.
- Segment Performance: Revenue from the U.S. segment was $1.2 billion, down 2% year-over-year but flat on an organic operational basis, demonstrating the effectiveness of Zoetis's diversified strategy in both companion and livestock products.
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See More
Zoetis Q4 2025 Earnings Beat Expectations
- Earnings Beat: Zoetis reported an adjusted EPS of $1.48 for Q4 2025, surpassing the consensus estimate of $1.40, indicating strong performance in the animal health sector and boosting investor confidence.
- Positive Market Reaction: Following the earnings report, Zoetis's stock price increased, reflecting market optimism regarding the company's future growth potential, which may attract more investor interest.
- Enhanced Competitive Position: The robust earnings report highlights Zoetis's increasing competitiveness in the animal health market, particularly in vaccine and therapeutic product sales, potentially laying the groundwork for future market share growth.
- Optimistic Future Outlook: The management team expresses a positive outlook for future performance, anticipating continued benefits from global demand for animal health products, further driving revenue and profit growth.
See More
Zoetis Inc. Q4 2025 Earnings Call Insights
- Full Year Growth: Zoetis achieved 6% organic revenue growth and 7% adjusted net income growth for 2025, aligning with expectations, with international markets leading at 8%, showcasing the company's global footprint advantage.
- Product Line Performance: In 2025, livestock business saw an 8% organic revenue growth while companion animal business grew by 5%, with the Simparica franchise growing 12%, indicating strong performance in the pet health sector.
- Future Outlook: Zoetis projects organic revenue growth of 3% to 5% for 2026, with adjusted net income expected between $2.975 billion and $3.025 billion, as the companion animal business remains a key growth driver despite competitive pressures.
- Financial Results Overview: In Q4 2025, Zoetis reported $2.4 billion in revenue, a 3% increase year-over-year, with adjusted net income at $648 million, also up 3%, reflecting the company's resilience in a complex market environment.
See More
Zacks Research Daily: Tech Stock Updates
- NVIDIA Strong Performance: NVIDIA's stock has risen 44.2% over the past year, slightly trailing the semiconductor industry's 45.1% growth, benefiting from robust demand for AI and high-performance computing, particularly with GPUs based on its Hopper and Blackwell architectures driving data center revenue growth.
- Microsoft AI Business Growth: Microsoft shares have dipped 0.2%, yet its AI business momentum and Copilot adoption are propelling Azure cloud infrastructure expansion, with strong Office 365 commercial demand, although Azure growth guidance has slowed to 37-38%, indicating potential demand saturation risks.
- JPMorgan Sustained Growth: JPMorgan's stock has increased by 14.5%, outperforming the investment banking industry's 24.9% growth, with expectations for nearly a 9% rise in net interest income for 2026, despite concerns over weak asset quality and market volatility potentially impacting non-interest income.
- Star Group Acquisition-Driven Growth: Star Group's shares have gained 6.9%, operating in a fragmented heating fuel market in the Northeast and Mid-Atlantic, leveraging acquisitions to enhance operational leverage, although facing risks from weather volatility and regulatory pressures.
See More
Zoetis to Participate in 2026 Animal Health Summit
- Event Participation: Zoetis will participate in the Bank of America Securities 2026 Animal Health Summit on February 26, 2026, at 1:15 p.m. ET, showcasing its leadership in the animal health sector and enhancing brand visibility.
- Executive Representation: CFO Wetteny Joseph will represent the company, indicating the management's commitment to industry developments and strengthening investor confidence through direct engagement.
- Live Webcast: The event will feature a live audio webcast accessible via the Zoetis investor website, ensuring transparency and fostering interaction with stakeholders.
- Company Vision: Zoetis is dedicated to advancing the animal health industry through innovation and customer-centric services, solidifying its market leadership in over 100 countries worldwide.
See More
Investment Opportunities in Novo Nordisk and Zoetis
- Novo Nordisk's Drug Resurgence: Novo Nordisk's Wegovy pill has been approved in the U.S., selling over 170,000 prescriptions in its first month, attracting many new patients despite competitive pressures, indicating strong potential in the weight loss market.
- Sales Warning and Growth Outlook: Although management warns of a potential 13% drop in sales due to pricing competition, Novo Nordisk's revenue has grown by 77% over the past three years, showcasing its long-term growth capability; if Wegovy continues to succeed, both stock price and dividends could rise.
- Zoetis's Market Position: As a leader in animal health, Zoetis has consistently raised its dividend for 12 years, with nearly 10% annualized growth expected over the next 3-5 years, benefiting from global population growth and increased spending on pets by younger generations.
- Stock Price Weakness and Investment Opportunity: Despite recent market volatility due to negative publicity from its canine osteoarthritis drug, Zoetis's current P/E ratio of just over 21 is significantly lower than historical levels, presenting a buying opportunity for investors looking to capitalize on its long-term wealth-building potential.
See More
Zoetis Reports Strong Q4 2025 Earnings, Beats Expectations
- Earnings Beat: Zoetis reported an adjusted EPS of $1.48 for Q4 2025, surpassing the consensus estimate of $1.40, indicating robust profitability amidst a competitive landscape.
- Stable Sales Growth: The company achieved sales of $2.387 billion, a 3% year-over-year increase, nearly aligning with the consensus of $2.36 billion, reflecting stable performance across multiple product lines.
- Segment Performance: Revenue from the U.S. segment was $1.2 billion, down 2% year-over-year but flat on an organic operational basis, demonstrating the effectiveness of Zoetis's diversified strategy in both companion and livestock products.
- Positive 2026 Outlook: Zoetis forecasts adjusted EPS for 2026 between $7.00 and $7.10, exceeding the consensus of $6.80, showcasing confidence in future growth despite competitive pressures in key segments.
See More
Zoetis Q4 2025 Earnings Beat Expectations
- Earnings Beat: Zoetis reported an adjusted EPS of $1.48 for Q4 2025, surpassing the consensus estimate of $1.40, indicating strong performance in the animal health sector and boosting investor confidence.
- Positive Market Reaction: Following the earnings report, Zoetis's stock price increased, reflecting market optimism regarding the company's future growth potential, which may attract more investor interest.
- Enhanced Competitive Position: The robust earnings report highlights Zoetis's increasing competitiveness in the animal health market, particularly in vaccine and therapeutic product sales, potentially laying the groundwork for future market share growth.
- Optimistic Future Outlook: The management team expresses a positive outlook for future performance, anticipating continued benefits from global demand for animal health products, further driving revenue and profit growth.
See More
Zoetis Inc. Q4 2025 Earnings Call Insights
- Full Year Growth: Zoetis achieved 6% organic revenue growth and 7% adjusted net income growth for 2025, aligning with expectations, with international markets leading at 8%, showcasing the company's global footprint advantage.
- Product Line Performance: In 2025, livestock business saw an 8% organic revenue growth while companion animal business grew by 5%, with the Simparica franchise growing 12%, indicating strong performance in the pet health sector.
- Future Outlook: Zoetis projects organic revenue growth of 3% to 5% for 2026, with adjusted net income expected between $2.975 billion and $3.025 billion, as the companion animal business remains a key growth driver despite competitive pressures.
- Financial Results Overview: In Q4 2025, Zoetis reported $2.4 billion in revenue, a 3% increase year-over-year, with adjusted net income at $648 million, also up 3%, reflecting the company's resilience in a complex market environment.
See More
