Financing Scale: Zoetis announced a pricing of $1.75 billion for its convertible notes offering, expecting net proceeds of approximately $1.723 billion, or $1.969 billion if the initial purchasers fully exercise their option, indicating a strong focus on optimizing capital structure.
Stock Buyback Plan: The company plans to utilize about $1.6 billion of the net proceeds for stock repurchases, enhancing shareholder value while aiming to complete the buyback by the first quarter of 2026, reflecting confidence in future market performance.
Convertible Note Terms: The notes carry an annual interest rate of 0.25% and mature in 2029, with an initial conversion price of approximately $148.20 per share, representing a 22.5% premium over the current stock price, which enhances their attractiveness to investors.
Risk Management Strategy: Zoetis is also engaging in capped call transactions with a cap price of $211.7150 per share to mitigate potential dilution risks, thereby boosting market confidence in its stock and further solidifying its leadership position in the animal health sector.
ZTS
$121.825+Infinity%1D
Analyst Views on ZTS
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 167.25 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.
11 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 167.25 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
4 Hold
0 Sell
Moderate Buy
Current: 120.980
Low
130.00
Averages
167.25
High
200.00
Current: 120.980
Low
130.00
Averages
167.25
High
200.00
BofA
Buy -> Neutral
downgrade
$165 -> $135
2025-12-15
New
Reason
BofA
Price Target
$165 -> $135
2025-12-15
New
downgrade
Buy -> Neutral
Reason
BofA downgraded Zoetis to Neutral from Buy with a price target of $135, down from $165.
HSBC
Buy
downgrade
$180 -> $140
2025-12-10
Reason
HSBC
Price Target
$180 -> $140
2025-12-10
downgrade
Buy
Reason
HSBC lowered the firm's price target on Zoetis to $140 from $180 and keeps a Buy rating on the shares as part of a 2026 outlook for the pharma group. The firm believes the sector is well positioned to outperform in 2026, "even more so if AI panic kicks in." HSBC's preferred stocks are "growth bucket ideas," but says "fallen angels and value could work as well."
Barclays
Equal Weight
initiated
$136
2025-12-08
Reason
Barclays
Price Target
$136
2025-12-08
initiated
Equal Weight
Reason
Barclays initiated coverage of Zoetis with an Equal Weight rating and $136 price target. The firm rolled out coverage on the specialty pharmaceuticals industry with a neutral view, saying investor sentiment is improving as companies shift focus to innovation, margin expansion and de-leveraging. The group's pricing headwinds are easing while debt leverage is coming down, the analyst tells investors in a research note. Barclays sees "plenty of opportunity" as the sector "remains in a transition phase."
KeyBanc
initiated
2025-11-20
Reason
KeyBanc
Price Target
2025-11-20
initiated
Reason
KeyBanc initiated coverage of Zoetis with a Sector Weight rating.
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.
