What Are Wall Street Analysts' Target Price for Zoetis Stock?

Parsippany, New Jersey-based Zoetis Inc. (ZTS) discovers, develops, and commercializes animal health medicines, vaccines, and diagnostic products and services. With a market cap of $79.9 billion, Zoetis’ operations span over 100 countries in North America, Europe, and internationally.

The animal health giant has significantly underperformed the broader market over the past year. ZTS stock has declined 10.3% on a YTD basis and gained 4.9% over the past 52 weeks lagging behind the S&P 500 Index’s ($SPX) rally of 25.5% in 2024 and 35.7% over the past 52-week period.

Narrowing the focus, ZTS has also underperformed the SPDR S&P Pharmaceuticals ETF’s (XPH) 13.3% gains on a YTD basis and 34% returns over the past year. 

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Despite reporting better-than-expected results, Zoetis’ stock dipped 3.7% after the release of its Q3 earnings on Nov. 4. The company reported a robust 11% year-on-year growth in revenue, reaching $2.4 billion. Zoetis has continued to observe substantial increases in the U.S. and international markets. Its U.S. segment reported an impressive 15% revenue growth to $1.3 billion, driven by solid demand for companion animal products. Sales of livestock products also increased, with a 7% growth in the international segment on a reported basis.

The company also reported an impressive growth in profitability with its adjusted net income growing 13.8% year-on-year, reaching $716 million and its adjusted EPS of $1.58 surpassed analysts’ earnings estimates by a notable 8.2%. Moreover, observing the robust Q3 results and underlying strength in companion animal products, Zoetis raised its full-year guidance for revenue and adjusted EPS.

For the current fiscal, ending in December, analysts expect ZTS to report a 10.9% year-over-year growth in adjusted EPS to $5.90. The company’s earnings surprise history is mixed. It surpassed analysts’ bottom-line estimates in three of the past four quarters while missing on another occasion.

ZTS has a consensus “Strong Buy” rating overall. Out of the 15 analysts covering the stock, 14 recommend a “Strong Buy” and one advises a “Moderate Buy” rating. 

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On Oct. 11, JPMorgan Chase & Co. (JPM) analyst Chris Schott maintained an “Overweight” rating on ZTS while raising the price target to $230.

The mean price target of $220.54 represents a premium of 24.6% to current price levels. The Street-high target of $248 suggests a potential upside of 40.1%. 

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On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.