Zoetis initiated with a Neutral at UBS

UBS initiated coverage of Zoetis (ZTS) with a Neutral rating and $196 price target Zoetis is “reaping the rewards of a relatively unchallenged, multi-year innovation cycle,” while product breadth and vet loyalty have secured the company’s positioning for revenue growth, the analyst tells investors. The firm projects a 6% revenue compound annual growth rate and 7% EBITDA CAGR from 2025-2030, but sees a risk/reward skew that “appears balanced here” and is less convinced investors would be willing to pay higher multiples in the face of slowing growth.