Added to YB: 2026-05-21
Pitch date: 2026-05-19
ZTS [neutral]
Zoetis Inc.
+1.58%
current return
Author Info
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Company Info
Zoetis Inc. engages in the discovery, development, manufacture, and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health solutions for the animal health industry in the United States and internationally.
Market Cap
$32.6B
Pitch Price
$78.47
Price Target
160.00 (+103%)
Dividend
2.73%
EV/EBITDA
9.52
P/E
12.73
EV/Sales
4.19
Sector
Pharmaceuticals
Category
value
Quick Value #315 - Zoetis (ZTS)
ZTS (watchlist): Market leader in $50B animal health industry (5-6% annual growth). Stock down 60% from peak to $77 (~11x P/E) on slowing growth & rising competition. US companion sales fell 11% in Q1 (vet visit weakness), but international +6.5%. Margins at 43-44% vs peers at 20-33% (compression risk). Pipeline targets $7-9B TAM in kidney/oncology/cardiology (2027-28+ launches). Trading cheapest in peer group despite leadership. Upside: if pipeline delivers, 15-20x on $8 2028 EPS = $120-160 (56-108% gain). Downside: at 2013 margins & 8x EBITDA = $54 (30% loss). 2-3x asymmetry hinges on pipeline execution & margin sustainability.
Read full article (6 min)