Zoetis (ZTS) Stock Forecast & Price Target

Zoetis has demonstrated substantial growth in its customer engagement, with the Zoetis Petcare Rewards program expanding from 708,000 pet owners in 2018 to 2.5 million in 2023, bolstered by over $120 million in investments in direct-to-consumer marketing. The company's revenue from the product Simparica reached $356 million in the third quarter, representing a year-over-year increase of 7%, while key dermatological products achieved global revenues of $469 million, reflecting a 3% growth year-over-year. This strong growth trajectory, particularly in the companion animal segment, supports a positive outlook for Zoetis's financial performance and market position.

Zoetis has revised its 2025 revenue guidance downward to a range of $9.400 billion to $9.475 billion, reflecting a decrease from previous expectations and indicating a slowdown in organic operational growth. The company's performance in the U.S. companion animal health segment has been disappointing, with recent sales remaining flat amid increased competitive pressures and a decline in veterinary clinic visits. Furthermore, the ongoing negative sentiment surrounding its OA pain product, driven by social media concerns, has contributed to an 11% year-over-year decline in this segment, further exacerbating the company's financial challenges.