Zoetis (ZTS) Stock Forecast & Price Target

Zoetis has demonstrated significant growth in customer engagement and marketing investments, with a substantial increase in enrollments in the Zoetis Petcare Rewards program from 708,000 in 2018 to 2.5 million in 2023, alongside a marketing investment exceeding $120 million in the U.S. this year. In Q3, the company benefited from strong performance in its product offerings, with Simparica contributing $356 million in revenue and a year-over-year growth of 7%, while key dermatological products generated $469 million globally, achieving a growth rate of 3% year-over-year. This combination of increasing customer loyalty and robust revenue growth from key product segments positions Zoetis favorably within the animal health market, reinforcing its leading market share and future growth potential.

Zoetis has revised its 2025 revenue guidance downward to a range of $9.400 billion to $9.475 billion, reflecting a reduction in expected organic operational growth from previous estimates. The company has reported an 11% year-over-year decline in its OA pain business, attributed to safety concerns surrounding its product Librela, contributing to overall disappointing sales. Furthermore, the core U.S. companion animal health segment has shown stagnation, impacted by increased competition and a decline in veterinary clinic visits, which compounds the firm's challenges moving forward.