Zoetis Inc. Stock Price Targets
Zoetis Inc. (ZTS) Stock Price Targets & Analysis
Comprehensive analysis of short, mid, and long-term price targets for Zoetis Inc. (ZTS).
Give me a comprehensive price target analysis for Zoetis Inc. (ZTS).
Comprehensive Price Target Analysis for Zoetis Inc. (ZTS)
Executive Summary
Zoetis Inc. (ZTS) exhibits a robust financial profile with a current trading price of approximately $154.11, aligning closely with the median analyst target of $200. The stock is supported by solid earnings growth, qualitative momentum indicated by technical indicators, and a favorable valuation relative to its growth prospects. The medium to long-term outlook remains bullish, with analyst consensus favoring higher valuation levels driven by strong fundamentals and potential catalysts in the veterinary pharmaceuticals sector.
Fundamental Analysis
| Metric | Value |
|---|---|
| Market Cap | $68.3 billion |
| Enterprise Value | $73.66 billion |
| P/E Ratio (Trailing/Forward) | 26.52 / 24.31 |
| Price to Book | 13.75 |
| Return on Equity (ROE) | 52.77% |
| Profit Margins | 27.83% |
| Gross Margins | 71.47% |
| Operating Margins | 40.20% |
| Debt-to-Equity | 137.01 |
| Cash & Equivalents | $1.45 billion |
The valuation indicates a premium market position justified by high margins and ROE, complemented by manageable debt levels given the cash reserves.
Earnings Analysis
Recent Earnings & Trends
Zoetis delivered consistent earnings, with net income from continuing operations around $718 million as of the latest quarter. EPS trends show a slight decline over recent periods:
| Period | EPS (Diluted) |
|---|---|
| Current | 1.63705 |
| 7 days ago | 1.65681 |
| 30 days ago | 1.65403 |
Growth trajectory over one year remains positive, with EPS up from approximately 6.22 to 6.87, indicating steady expansion.
EPS Revisions & Sentiment
Recent revisions reveal a bullish sentiment with more upward revisions (+10 over the year) compared to downward revisions, suggesting analysts' confidence in sustained earnings growth.
Earnings Quality
Strong revenue growth ($2.46 billion latest) and healthy margins underpin earnings reliability, although exposure to currency and patent expiry risks should be monitored.
Technical Analysis
- Price Action & Support/Resistance: Current price sits near the support level ($153), which is now reinforced by the red horizontal support line extended into the future.
- Moving Averages: Price remains above the 50-day MA (~$158), indicating short-term momentum, but recent dips suggest caution.
- RSI (56): Reflects moderate bullish momentum but not overbought.
- MACD: Slight positive trend with remaining above signal line implying continued upward momentum.
Analyst Consensus & Price Targets
| Target Level | Price | Notes |
|---|---|---|
| Low | $153 | Close to current price; critical support level |
| Median | $200 | Majority consensus; justified by growth potential |
| High | $230 | Optimistic scenario; potential catalysts |
Number of analysts: 15, with a median upside of ~30%. Catalysts include pipeline innovation and sector tailwinds.
Price Target Analysis (Short, Mid, Long-Term)
Short-Term (3 months):
- Target Price: $153–$160
- Justification: Near support level, technical oversold signals in RSI, potential rebound.
- Drivers: Earnings stabilization, sector momentum.
Mid-Term (12 months):
- Target Price: $200
- Justification: Fundamentals support growth; analyst median target.
- Drivers: New product launches, sustained earnings growth, positive sector dynamics.
Long-Term (3+ years):
- Target Price: $230+
- Justification: Structural growth in veterinary pharmaceuticals, high margins, and international expansion.
- Drivers: Market penetration, pipeline development, demographic trends.
Key Risks & Opportunities
| Risks | Opportunities |
|---|---|
| Rising debt levels impacting margins | Sector growth driven by pet ownership trends |
| Competitive patent expiration pressure | Acquisition and pipeline expansion |
| Currency and regulatory risks | Tech innovations and regulatory approvals |
Investment Recommendation
Hold to accumulate: Given the proximity to support levels and the overall bullish trend, a buying opportunity exists below $160. The stock has an attractive risk-reward profile over 12-24 months, with targeted upside to $200-$230 depending on sector and company performance.
| Expected Return (12-24 months): | ~25-50% upside depending on sector and execution. |
This comprehensive analysis supports a cautiously optimistic outlook, with opportunities for substantial gains aligned with significant fundamental strength and sector tailwinds.