KeyBanc Starts Zoetis Inc. (ZTS) at Sector Weight

KeyBanc analyst Steve Dechert initiates coverage on Zoetis Inc. (NYSE: ZTS) with a Sector Weight rating.

The analyst comments "We are initiating coverage of ZTS with a Sector Weight rating on continued headwinds from the launches of its OA pain mAb products (Librela and Solensia) and increased competition within two of its key franchises (parasiticides and dermatology). However, we acknowledge that ZTS has a strong track record of developing innovative animal health products, but we don’t see a material boost to revenues from one of these products until at least FY27. Additionally, ZTS’s stock is trading at a ~17.5x forward P/E multiple, representing a discount to its two-year average of ~27x. We think this multiple is warranted currently as we await new Innovative Products launches and/or confidence around reliable revenue growth from its OA pain mAb franchise to get more constructive on the stock, which could come from its recently approved Lenivia and Portela products."

For an analyst ratings summary and ratings history on Zoetis Inc. click here. For more ratings news on Zoetis Inc. click here.

Shares of Zoetis Inc. closed at $117.08 yesterday.

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