Morgan Stanley analyst Erin Wright has maintained their bullish stance on ZTS stock, giving a Buy rating on February 5.
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Erin Wright’s rating is based on several key factors, including Zoetis’s potential for solid operational growth and the perceived overreaction to competitive concerns. Despite the challenges posed by competition and the performance of their key product, Librela, the expectations for the company’s financial guidance in 2025 appear to be appropriately conservative. Wright anticipates a robust revenue performance in the fourth quarter, supported by strength in the companion animal segment.
Wright also highlights the company’s promising pipeline, suggesting that new product launches and line extensions could bolster future growth. Although the market has expressed concerns over foreign exchange headwinds and the impact of recent divestitures, these issues seem to be accounted for in current investor expectations. Overall, the combination of potential growth and a well-regarded product pipeline underpins the Buy recommendation for Zoetis’s stock.
Wright covers the Healthcare sector, focusing on stocks such as Walgreens Boots Alliance, UnitedHealth, and Cardinal Health. According to TipRanks, Wright has an average return of 13.6% and a 62.67% success rate on recommended stocks.
In another report released on February 5, Barclays also maintained a Buy rating on the stock with a $242.00 price target.