TD Cowen reduced its price target for Zoetis Inc. to $94 from $104 while maintaining a Buy rating, citing declines in U.S. clinic visits for canine dermatology and parasiticides. The adjustment follows a broader downward revision in near-term estimates, which assume flat revenue for 2026 and 1% earnings per share growth.
The firm’s long-term outlook projects 4% annual revenue growth and an 8% compound annual growth rate in EPS from 2025 through 2032, supported by osteoarthritis pain treatments, livestock products, pipeline launches, and share buybacks. Zoetis’ Q2 2026 adjusted diluted EPS reached $1.87, slightly exceeding the $1.86 forecast, though revenue of $2.5 billion fell short of the expected $2.51 billion.
Zoetis itself revised full-year guidance downward due to reduced demand in companion animal segments, heightened competition, and more price-sensitive customers. The stock was trading at $77.17, down nearly 50% over the past year.
Stifel lowered its price target to $80 from $85 while maintaining a Hold rating, citing weaknesses in key franchises such as Dermatology and the Simparica Family. William Blair also downgraded Zoetis to Market Perform from Outperform, citing a shifted risk-to-reward balance.
