Cantor Fitzgerald Reaffirms “Overweight” Rating for Zoetis (ZTS)

Cantor Fitzgerald reaffirmed their overweight rating on shares of Zoetis (NYSE:ZTS) in a report issued on Wednesday, The Fly reports. The firm currently has a $105.00 target price on the stock, up from their previous target price of $98.00.

“. We reiterate our Overweight rating and raise our 12-month PT for ZTS shares to $105 from $98. The increase in our PT is driven by multiple expansion. Given the company’s durable business model and the positive outlook for macro factors, we think ZTS’s multiple will hold and upwards earnings revisions should drive shares higher. We think ZTS’s multiple will be supported by: 1) its durable business model, 2) positive outlook for macro factors, and 3) solid execution by management. Upwards earnings revisions could come from: 1) higher-than- anticipated peak sales for new launches, 2) better-than-expected operating margins in 2018+, and 3) M&A.”,” Cantor Fitzgerald’s analyst wrote.

ZTS has been the subject of a number of other research reports. Stifel Nicolaus increased their price target on shares of Zoetis from $86.00 to $95.00 and gave the stock a buy rating in a research note on Friday, August 3rd. Morgan Stanley increased their price target on shares of Zoetis from $87.00 to $92.00 and gave the stock a hold rating in a research note on Friday, August 3rd. Zacks Investment Research downgraded shares of Zoetis from a buy rating to a hold rating in a research report on Friday, October 5th. Jefferies Financial Group set a $96.00 price objective on shares of Zoetis and gave the stock a buy rating in a research report on Friday, July 13th. Finally, Bank of America upped their price objective on shares of Zoetis from $97.00 to $100.00 and gave the stock a buy rating in a research report on Monday, July 30th. Seven research analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company’s stock. The stock has an average rating of Buy and a consensus price target of $92.63.

Shares of NYSE:ZTS opened at $91.47 on Wednesday. The firm has a market cap of $44.25 billion, a P/E ratio of 38.11, a price-to-earnings-growth ratio of 1.74 and a beta of 1.01. The company has a quick ratio of 2.92, a current ratio of 4.38 and a debt-to-equity ratio of 2.50. Zoetis has a 1-year low of $63.03 and a 1-year high of $94.31.

Zoetis (NYSE:ZTS) last issued its quarterly earnings results on Thursday, August 2nd. The company reported $0.77 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.71 by $0.06. The firm had revenue of $1.42 billion during the quarter, compared to analysts’ expectations of $1.38 billion. Zoetis had a net margin of 19.95% and a return on equity of 72.30%. Zoetis’s quarterly revenue was up 11.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.53 EPS. As a group, research analysts expect that Zoetis will post 3.07 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 3rd. Shareholders of record on Tuesday, November 20th will be given a dividend of $0.126 per share. The ex-dividend date of this dividend is Monday, November 19th. This represents a $0.50 dividend on an annualized basis and a yield of 0.55%. Zoetis’s payout ratio is currently 20.83%.

In other news, insider Roman Trawicki sold 8,266 shares of the stock in a transaction dated Tuesday, August 7th. The shares were sold at an average price of $92.53, for a total value of $764,852.98. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Juan Ramon Alaix sold 135,000 shares of the stock in a transaction dated Tuesday, August 14th. The shares were sold at an average price of $91.55, for a total transaction of $12,359,250.00. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 213,467 shares of company stock valued at $19,502,725. 0.35% of the stock is owned by insiders.

Several institutional investors and hedge funds have recently made changes to their positions in ZTS. Gables Capital Management Inc. purchased a new position in shares of Zoetis in the 1st quarter valued at about $109,000. Sun Life Financial INC increased its holdings in shares of Zoetis by 604.3% in the 2nd quarter. Sun Life Financial INC now owns 1,310 shares of the company’s stock valued at $112,000 after purchasing an additional 1,124 shares in the last quarter. Signature Estate & Investment Advisors LLC purchased a new position in shares of Zoetis in the 3rd quarter valued at about $112,000. Migdal Insurance & Financial Holdings Ltd. increased its holdings in shares of Zoetis by 3,033.3% in the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 1,410 shares of the company’s stock valued at $120,000 after purchasing an additional 1,365 shares in the last quarter. Finally, Fort L.P. purchased a new position in shares of Zoetis in the 2nd quarter valued at about $121,000. Institutional investors and hedge funds own 89.80% of the company’s stock.

Zoetis Company Profile

Zoetis Inc discovers, develops, manufactures, and markets veterinary vaccines and medicines in the United States and internationally. It commercializes products primarily across species, including livestock, such as cattle, swine, poultry, fish, and sheep; and companion animals comprising dogs, cats, and horses.

Further Reading: Return on Investment (ROI) Defined, Explained

The Fly

Analyst Recommendations for Zoetis (NYSE:ZTS)

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