Zoetis remains favorite animal health idea at JPMorgan

JPMorgan says Zoetis (ZTS) remains the firm’s favorite idea in the animal health space into the Q2 reports. The analyst sees an attractive setup for Zoetis saying Librela controversies are fading, Apoquel’s competitive environment is better than expected and the company is seeing relatively healthy trends across its portfolio. For Elanco (ELAN), the firm expects stable underlying trends but sees the focus of the earnings call “squarely on” the Zenrelia’s label, which will have a black box and limited duration dosing. For Idexx Laboratories (IDXX), JPMorgan says vet visit trends remain modestly below its expectations and that it would not be surprised to see the company “modestly tap down” expectations for the remainder of the year.