Zoetis (NYSE:ZTS) Cut to “Neutral” at Piper Sandler

Piper Sandler downgraded shares of Zoetis (NYSE:ZTS) from an overweight rating to a neutral rating in a research note issued to investors on Thursday morning, MarketBeat Ratings reports. The firm currently has $135.00 target price on the stock, down from their prior target price of $190.00.

Other equities research analysts have also issued research reports about the stock. KeyCorp assumed coverage on shares of Zoetis in a report on Thursday, November 20th. They issued a “sector weight” rating for the company. The Goldman Sachs Group raised shares of Zoetis to a “buy” rating in a research report on Monday, December 15th. JPMorgan Chase & Co. dropped their target price on shares of Zoetis from $230.00 to $200.00 and set an “overweight” rating on the stock in a report on Wednesday, November 5th. Morgan Stanley set a $160.00 price target on Zoetis in a report on Thursday, December 18th. Finally, Bank of America downgraded shares of Zoetis from a “buy” rating to a “neutral” rating and set a $135.00 target price for the company. in a research note on Monday, December 15th. Five research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat, Zoetis presently has an average rating of “Hold” and an average target price of $152.91.

Zoetis Trading Down 0.3%

ZTS opened at $124.04 on Thursday. The stock has a 50-day moving average of $123.58 and a 200 day moving average of $138.29. The company has a current ratio of 3.64, a quick ratio of 2.28 and a debt-to-equity ratio of 1.31. Zoetis has a 12 month low of $115.25 and a 12 month high of $177.40. The firm has a market cap of $54.66 billion, a P/E ratio of 20.88, a P/E/G ratio of 2.15 and a beta of 0.97.

Zoetis (NYSE:ZTS) last posted its quarterly earnings data on Tuesday, November 4th. The company reported $1.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.62 by $0.08. Zoetis had a return on equity of 57.19% and a net margin of 28.21%.The business had revenue of $2.40 billion during the quarter, compared to analyst estimates of $2.42 billion. During the same period last year, the company earned $1.58 EPS. The company’s revenue for the quarter was up .5% on a year-over-year basis. Zoetis has set its FY 2025 guidance at 6.300-6.400 EPS. As a group, research analysts forecast that Zoetis will post 6.07 EPS for the current year.

Zoetis Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 3rd. Investors of record on Tuesday, January 20th will be given a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend is Tuesday, January 20th. This is a positive change from Zoetis’s previous quarterly dividend of $0.50. Zoetis’s payout ratio is currently 35.69%.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Tyche Wealth Partners LLC purchased a new stake in Zoetis in the fourth quarter valued at approximately $216,000. Patton Fund Management Inc. lifted its stake in Zoetis by 24.1% during the 4th quarter. Patton Fund Management Inc. now owns 1,780 shares of the company’s stock valued at $224,000 after acquiring an additional 346 shares during the period. Cove Private Wealth LLC boosted its holdings in shares of Zoetis by 12.1% in the 4th quarter. Cove Private Wealth LLC now owns 5,842 shares of the company’s stock valued at $735,000 after acquiring an additional 632 shares during the last quarter. Assetmark Inc. increased its stake in shares of Zoetis by 143.0% in the fourth quarter. Assetmark Inc. now owns 19,862 shares of the company’s stock worth $2,499,000 after acquiring an additional 11,689 shares during the period. Finally, Norris Perne & French LLP MI raised its holdings in shares of Zoetis by 24.8% during the fourth quarter. Norris Perne & French LLP MI now owns 63,050 shares of the company’s stock worth $7,933,000 after purchasing an additional 12,534 shares during the last quarter. 92.80% of the stock is owned by institutional investors and hedge funds.

Zoetis News Roundup

Here are the key news stories impacting Zoetis this week:

• Positive Sentiment: Several market write-ups argue Zoetis is undervalued after a roughly 24% one-year pullback and present a buying opportunity; these narratives can attract value-focused investors. Is Zoetis (ZTS) Offering An Opportunity After A 24% One-Year Share Price Pullback
• Positive Sentiment: A Seeking Alpha piece makes a case that Zoetis is “Undervalued And Oversold,” reinforcing the narrative that current levels could be attractive to long-term investors. Zoetis: Undervalued And Oversold
• Positive Sentiment: Wall Street Zen upgraded Zoetis to a “Buy,” which can provide short-term support as some investors chase analyst upgrades. Zoetis (NYSE:ZTS) Upgraded by Wall Street Zen to “Buy” Rating
• Neutral Sentiment: A roundup of eight analyst ratings shows mixed views across the street, indicating no clear consensus and contributing to stock volatility. 7ZTS : What 8 Analyst Ratings Have To Say About Zoetis
• Neutral Sentiment: Aggregated analyst consensus remains around a “Hold,” which suggests many pros see limited near-term upside absent clearer catalysts. Zoetis Inc. (NYSE:ZTS) Given Average Recommendation of “Hold” by Analysts
• Negative Sentiment: Piper Sandler downgraded ZTS from “Overweight” to “Neutral” and cut its price target sharply (from $190 to $135), a material change that likely pressured the stock and investor sentiment. Piper Sandler downgrades Zoetis (ZTS)

About Zoetis

Zoetis Inc (NYSE: ZTS) is a global animal health company that develops, manufactures and markets a broad portfolio of products and services for companion animals and livestock. The company’s offerings include pharmaceuticals, vaccines and biologics, parasiticides and anti-infectives, as well as diagnostic instruments, consumables and laboratory testing services. Zoetis serves the veterinary community, livestock producers and other animal-health customers with products designed to prevent, detect and treat disease and to support animal productivity and welfare.

Zoetis traces its roots to the animal health business of Pfizer and became an independent, publicly traded company following a 2013 separation and initial public offering.