Zoetis (ZTS) Stock Forecast & Price Target

Zoetis exhibits a robust growth trajectory, evidenced by a significant increase in customer engagement with 2.5 million pet owners now enrolled in the Zoetis Petcare Rewards program, up from 708,000 in 2018, alongside a substantial investment of over $120 million in petcare initiatives in 2023. The company also reported notable revenue contributions from its product lines, with Simparica generating $356 million in Q3, representing a year-over-year growth of 7%. Furthermore, key dermatology products, including Apoquel and Cytopoint, collectively contributed $469 million in global revenue, achieving a year-over-year growth of 3%, reinforcing Zoetis's strong position in the animal health market.

Zoetis has revised its 2025 revenue guidance downward to a range of $9.400 billion to $9.475 billion, indicating a slowdown in organic operational growth expectations from previous figures, which has raised concerns among investors. The company experienced an 11% year-over-year decline in its OA pain business, primarily attributed to negative perceptions surrounding the safety of its product, Librela, which has adversely affected sales in its core companion animal health segment. Furthermore, the recent earnings report revealed a stagnation in U.S. revenues amid increasing competition and a decline in veterinary clinic visits, further contributing to a negative outlook on the stock.