Cantor Fitzgerald analyst Louise Chen reiterated a Buy rating on Zoetis (NYSE: ZTS) today and set a price target of $105. The company’s shares opened today at $91.79, close to its 52-week high of $94.31.
Chen noted:
“. We reiterate our Overweight rating and raise our 12-month PT for ZTS shares to $105 from $98. The increase in our PT is driven by multiple expansion. Given the company’s durable business model and the positive outlook for macro factors, we think ZTS’s multiple will hold and upwards earnings revisions should drive shares higher. We think ZTS’s multiple will be supported by: 1) its durable business model, 2) positive outlook for macro factors, and 3) solid execution by management. Upwards earnings revisions could come from: 1) higher-than- anticipated peak sales for new launches, 2) better-than-expected operating margins in 2018+, and 3) M&A.”
According to TipRanks.com, Chen is a 5-star analyst with an average return of 11.8% and a 42.0% success rate. Chen covers the Healthcare sector, focusing on stocks such as Bausch Health Companies Inc, Aridis Pharmaceuticals Inc, and Melinta Therapeutics Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Zoetis with a $97.63 average price target, implying a 6.4% upside from current levels. In a report issued on October 15, J.P. Morgan also upgraded the stock to Buy with a $100 price target.
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The company has a one-year high of $94.31 and a one-year low of $63.03. Currently, Zoetis has an average volume of 2.19M.
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Zoetis, Inc. discovers, develops and manufactures a portfolio of animal health medicines and vaccines. Its products are complemented by diagnostic products, genetic tests, bio devices and services. These are designed to meet the needs of veterinarians and the livestock farmers and companion animal.
