Zoetis (ZTS) Stock Forecast & Price Target

Zoetis has demonstrated significant growth in its customer engagement, with enrollment in its Petcare Rewards program increasing to 2.5 million pet owners from 708,000 in 2018, supported by over $120 million in investments in 2023 for marketing initiatives. The company’s product line continues to show robust performance, particularly with the Simparica product contributing $356 million in revenue during Q3, reflecting a year-over-year growth of 7%. Additionally, key dermatological products such as Apoquel and Cytopoint have collectively generated $469 million in global revenue, achieving a year-over-year growth of 3%.

Zoetis has revised its 2025 revenue guidance downward to between $9.400 billion and $9.475 billion, indicating a decline in anticipated organic operational growth from previous estimates. The company's orthopedic pain business experienced an 11% year-over-year decline, attributed to negative perceptions surrounding the safety profile of its product, Librela, which has adversely affected sales. Additionally, the slowdown in the U.S. companion animal health segment, which showed flat growth amidst increased competition and a decline in veterinary clinic visits, raises concerns about the firm’s ability to maintain its market position and financial performance.