Zoetis analyst day ‘slightly underperforming’

Zoetis analyst day ‘slightly underperforming’

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BofA and Goldman Sachs analysts diverged in their views after Zoetis’ (NYSE:) Analyst Day, held on Thursday.

Goldman Sachs, which maintained a buy rating on the stock, said in a research note reacting to the event that ZTS was “modestly underperforming.”

“While its new long-term outlook was broadly in line with expectations, it incorporated a wider-than-expected revenue range (MSD-HSD versus GS expecting ~HSD) and lacked detail on other elements of P&L (e.g. margins, NI growth),” the investment bank said.

However, they noted that while the lack of updates on market trends and uncertainty over competitive launches will likely remain a near-term overhang, “the pipeline overview should help build confidence in the outlook. of growth”.

Meanwhile, BofA analysts said the company provided sufficient information, despite its reluctance to be too specific.

“We believe mgmt was reluctant to be overly specific in its financial outlook in order to preserve financial flexibility in the years to come, particularly as competition enters the market in several key product areas,” the analysts said. , which maintained a Buy rating and a $200 price tag. target on the stock.

“Overall, we believe management has answered key questions about the stock and provided sufficient insight into what the ‘future Zoetis’ looks like, although more specific details will only become clear over time. .”


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