Zoetis Inc. Stock Price Targets
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).
Here is a comprehensive, data-driven analysis for Zoetis Inc. (ZTS), incorporating the requested price targets (Low: 153.00, Median: 195.00, High: 230.00) and extending the lines 30 days from today. Horizontal lines have been drawn on the chart as requested.
Summary of Price Target Lines (drawn on the chart)
- Low Target: 153.00 (green)
- Median Target: 195.00 (orange)
- High Target: 230.00 (red)
- Extension: Lines extend from 2025-10-02 to 2025-11-01 (approx. 30 days into the future)
Executive Summary
- Zoetis (ZTS) remains a dominant player in animal health with durable margins, strong cash generation, and a generous dividend. The current share price (~$147) sits below the 50-day moving average, suggesting near-term weakness, but the long-run fundamentals remain supportive.
- Analysts’ price targets imply meaningful upside from here, with a median target near $195 and a high-case target near $230, signaling a potential 32% to 56% upside over a 12–24 month horizon.
- Key near-term considerations include EPS momentum, revisions trends, and the balance between margin sustainability and competitive dynamics in the animal-health space.
Fundamental Analysis Table: Key Valuation and Financial Metrics
- All figures are taken from the provided data; values are as of the most recent period in the dataset.
| Metric | Value | Context / Notes |
|---|---|---|
| Current price | $146.95 | As of 2025-10-02 |
| Market cap | $65.1B | Large-cap, diversified animal-health leader |
| Enterprise value | $70.49B | EV reflects net debt position |
| Trailing P/E | 24.70 | Relative to large-cap peers (moderate-high) |
| Forward P/E | 23.18 | Implied next-year earnings expectations |
| PEG ratio | — | Not provided (null) |
| Price to Book | 13.11 | High vs. market average; reflects strong intangibles/margins |
| Return on Equity (ROE) | 0.528 | Very strong profitability on equity |
| Return on Assets (ROA) | 0.154 | Healthy asset utilization |
| Profit margin | 27.83% | High-margin business |
| Gross margin | 71.47% | Industry-leading gross discipline |
| Operating margin | 40.20% | Robust operating leverage |
| Debt to equity | 137.01 | Elevated leverage, but typical for a large pharma/animal-health firm with buybacks |
| Total cash | $1.45B | Net liquidity position (modest vs large cap) |
| Total debt | $6.82B | Manageable given robust FCF; note leverage ratio |
| Dividend yield | 1.39% | Attractive, but below sector leaders in some cases |
| Five-year avg dividend yield | 0.78% | Elevated current yield vs historical |
| Beta | 0.887 | Modest beta; lower market correlation than average |
Analyst Price Targets (Market consensus snapshot)
| Item | Value |
|---|---|
| Target Low | $153.00 |
| Target Mean | $190.09 |
| Target Median | $195.00 |
| Current price | $146.95 |
| Number of analysts | 15 |
| Target High | $230.00 |
Earnings Analysis Recent Earnings Summary (Key figures from the “Recent Earnings Summary” data; period-end references shown)
- Normalized EBITDA: 2025-06-30 = $1.13B; 2025-03-31 = $0.991B; 2024-12-31 = $0.921B; 2024-09-30 = $1.062B; 2024-06-30 = $1.059B
- Net income from continuing operations: 2025-06-30 = $718M; 2025-03-31 = $631M; 2024-12-31 = $581M; 2024-09-30 = $682M; 2024-06-30 = $624M
- Diluted EPS (ttm style in the data): 1.61 (2025-06-30) vs 1.41 (2025-03-31) vs 1.29 (2024-12-31)
- Diluted average shares (agency-projected): ~445.5M to ~456.0M across the periods (slight share-count growth)
- Net Income: 718M (2025-06-30) vs 631M (2025-03-31) vs 581M (2024-12-31) vs 682M (2024-09-30) vs 624M (2024-06-30)
- Revenue: Total revenue around $2.46–$2.46B in the latest period, with margin expansion in the most recent quarter
EPS Trend (quarterly and year-over-year)
| Period | Current EPS | 7 days ago | 30 days ago | 60 days ago | 90 days ago |
|---|---|---|---|---|---|
| 0Q | Diluted EPS: 1.6423 | 1.6423 | 1.63705 | 1.65403 | 1.65403 |
| +1Q | Diluted EPS: 1.48164 | 1.48164 | 1.48816 | 1.50041 | 1.50041 |
| 0Y | Diluted EPS (ttm): 6.34548 | 6.33077 | 6.32152 | 6.23399 | 6.22662 |
| +1Y | Diluted EPS (ttm): 6.87221 | 6.86776 | 6.8698 | 6.80234 | 6.80566 |
- Interpretation:
- Near-term EPS (0Q) is stable at around $1.64, with minor fluctuations.
- Trailing-12-month (0Y) EPS sits around $6.35–$6.87 with positive YoY growth (~8–9% YoY from $6.35 to $6.87).
- The year-ago line (+1Y) shows a continued upward trend, supporting a constructive longer-horizon earnings trajectory.
EPS Revisions
| Period | Up Last 7d | Up Last 30d | Down Last 30d | Down Last 7d |
|---|---|---|---|---|
| 0Q | 0 | 1 | 7 | 8 |
| +1Q | 3 | 3 | 4 | 4 |
| 0Y | 1 | 2 | 1 | 1 |
| +1Y | 1 | 2 | 2 | 1 |
- Interpretation:
- Over the latest 30 days, there have been more downgrades than upgrades across the quarters. This suggests modest near-term sentiment pressure on earnings revisions, though the magnitude of downgrades is concentrated in the most recent window.
- The +1Q and +1Y revisions show some upgrades but still a net tilt toward downgrades in the shorter horizon, indicating cautious investor sentiment in the very near term.
Technical Analysis (Last 60 Days)
- 50-Day Moving Average (latest data): 150.0
- Price vs. 50-day MA: Current price (146.95) is below the 50-day MA, implying near-term weakness relative to the recent trend and potential support near the MA level.
- RSI (14) (latest): 40.3 (mid-range, indicating modest bearish momentum but not oversold)
- MACD (12,26,9) (latest): MACD around -2.1; Signal around -2.2 (negative, suggesting ongoing bearish momentum but potential for turnaround if MACD converges with price)
- Interpretation:
- The stock has recently traded below the 50-day MA, with bearish MACD and mid-range RSI. However, price is near the 50-day MA support region, which could provide a near-term floor. The momentum indicators do not imply an imminent breakout, but a reversion toward the mean (or a catalysts-driven move) could occur if fundamentals remain favorable.
Analyst Consensus & Price Targets
- Current price: $146.95
- Target Low / Median / High: $153 / $195 / $230
- Mean target: $190.09
- Analysts covering: 15
- Implication: The consensus is for meaningful upside vs. current price, with the median target implying ~32% upside over a 12–18 month horizon, and the high target implying even greater upside.
Price Target Analysis (Short, Mid, Long-Term) Short-Term (3 months)
- Target: 195 (Median)
- Rationale:
- Near-term EPS momentum is positive (0Q EPS around $1.64, with YoY EPS growth +8–9% for trailing periods).
- The company’s margin profile remains robust (gross ~71%, operating ~40%), supporting earnings resilience into the next reporting cycle.
- Analyst sentiment shows some upward revisions in the near term (+1Q revisions show some upgrades), though the overall revision data also show near-term downgrades; the base case is constructive given a steady revenue trajectory and stable cash flow.
- Key drivers:
- Sustained margin discipline and cost controls.
- Modest revenue growth in core animal-health segments.
- Potential buyback activity and continued dividend accretion.
- Any near-term positive earnings news or product-cycle updates.
Mid-Term (12 months)
- Target: 210–230 (mean/median region; use 230 as the high-case)
- Rationale:
- If Zoetis sustains its premium margins and delivers stable top-line growth, multiple expansion could drive price toward the upper end of the target range.
- FCF generation should support ongoing capital return programs, including dividends and potential buybacks, which can support stock price.
- Key drivers:
- Margin stability and potential expansion (operating margin ~40% historically; any efficiency gains could lift EBITDA/NI).
- New product launches, vaccines, or pipeline progress within core animal health segments.
- Currency tailwinds/hedging effectiveness and a relatively balanced cash deployment policy.
- Steady demand in both developed and emerging markets, with resilience in consumer spending on animal health.
Long-Term (3+ years)
- Target: 230 (base/high-case)
- Rationale:
- Structural durability of the animal health market and Zoetis’ leadership position support long-run earnings growth and cash flow stability.
- If the company continues to execute on product launches, geographic expansion, and ongoing capital allocation, a path to the current high target (230) remains plausible in a multi-year horizon.
- Key drivers:
- Continued revenue growth in vaccines and companion animal products.
- Margin discipline and operating leverage; potential efficiency gains.
- Strategic improvements in portfolio mix and potential bolt-on opportunities (M&A) within disciplined capital allocation.
- Macro drivers such as pet ownership growth and animal health spending trends.
Key Risks & Opportunities
- Key Risks:
- Entering a revenue slowdown due to macro headwinds (consumer spending, pet ownership trends) or competitive pressure in vaccines and pharmacology.
- Elevated leverage (Debt/Equity ~137) could constrain financial flexibility if interest rates rise or if margins compress.
- Currency volatility and global supply chain disruptions could affect revenue growth and cost structures.
- Regulatory risk in emerging markets and potential pricing reforms affecting profitability.
- Key Opportunities:
- Ongoing strong operating margins and free cash flow generation enabling attractive shareholder returns.
- Pipeline progress and new product introductions, including vaccines and therapies, with potential outsized impact on durable revenue growth.
- Geographic expansion, especially in high-growth emerging markets.
- Potential multiple expansion given steady profitability and consistent dividend returns.
Investment Recommendation
- Recommendation: Buy
- Time Horizon: 12–24 months
- Rationale:
- The stock trades with a solid margin profile, robust profitability, and a compelling < forward P/E around 23x, supported by healthy FCF and a reliable dividend.
- The price targets imply substantial upside from current levels: median target ≈ $195 (~32% upside) and high target ≈ $230 (~56% upside).
- Although near-term revisions show some headwinds, the company’s earnings trajectory and capital-allocation strategy remain favorable for patient investors.
- Expected Return Potential:
- Base-case (to median): about 28–33% over 12–18 months.
- Upside (to high): about 50–60% over 12–24 months.
- Note: Returns are contingent on favorable earnings outcomes, steady margins, and continued capital return; disruptions could temper upside.
Appendix: Data-driven Observations
- Price Target Context: The Low/Median/High targets align with a bullish thesis supported by a favorable cost structure and consistent profitability; the current price sits below the 50-day moving average, suggesting some near-term weakness, but the longer-term earnings trajectory remains constructive.
- Earnings Quality: Normalized EBITDA has shown a constructive trajectory in the latest reported period (2025-06-30) vs earlier quarters, supporting earnings quality. Net income from continuing operations also shows positive momentum, with YoY EPS growth evident.
- EPS Trends & Revisions: The EPS trend data illustrate stable near-term earnings (0Q around $1.64) with positive YoY earnings growth in the trailing period. Revisions data show a mix of upgrades and downgrades across periods, with more downgrades observed in the very near term, suggesting mixed near-term sentiment but not a structural deterioration in the earnings base.
- Technical Context: The stock trading below its 50-day MA and the negative MACD suggest near-term pressure, but RSI near mid-range does not indicate oversold conditions. The charted lines provide a clear upside resistance around the target levels.
Notes on Price Level Lines
- The following horizontal lines were drawn (extending 30 days from 2025-10-02 to 2025-11-01):
- 153.00 (Low Target) – color: green (#2ECC71)
- 195.00 (Median Target) – color: orange (#F39C12)
- 230.00 (High Target) – color: red (#E74C3C)
If you’d like, I can also provide a sensitivity analysis showing how the price targets shift with modest changes in earnings growth, margins, and multiple expansion assumptions, or generate a scenario table (bear/base/bull) with corresponding target paths.