Barclays’ latest commentary on Zoetis comes in the aftermath of Zoetis’ first-quarter earnings, which it described as “challenging.”
- Barclays flagged that the sentiment surrounding the stock and its valuation is "at all-time lows."
- The company’s CEO, Kristin Peck, told analysts during the Q1 earnings call in May that competition intensified across key pet care categories.
- Zoetis cut its 2026 revenue outlook to the $9.68 billion to $9.96 billion range, and adjusted EPS in the $6.85 to $7.00 range.
Shares of Zoetis (ZTS) attracted investor attention on Wednesday after Barclays issued fresh commentary on the animal health pharmaceutical company, saying that competitive headwinds in its companion animal portfolio may persist longer than investors expect.
At the time of writing, ZTS shares were marginally down in premarket trading.
Barclays’ Takeaway On ZTS
The firm’s commentary comes in the aftermath of Zoetis’ first-quarter earnings, which it described as “challenging.” According to TheFly, Barclays believes stabilization across the company’s key companion products "could be several quarters away."
They also flagged that the sentiment surrounding the stock and its valuation is "at all-time lows." The firm maintained its neutral rating of ‘Equal Weight’ but significantly lowered the price target to $85 from $136, now implying an upside potential of only 18% as of the stock’s last closing price on Tuesday.
However, data from Koyfin shows that Wall Street is largely bullish on ZTS, with 11 of 20 analysts covering the stock rating it a ‘Buy’ or higher, while the remaining rate it ‘Hold.’
Zoetis’ Q1 Earnings Recap
The company’s CEO, Kristin Peck, told analysts during the first-quarter (Q1) earnings call in May that competition intensified across key pet care categories, including dermatology and parasiticides, with additional pressure in vaccines from certain generics.
"This quarter reflects pressure in parts of our companion animal portfolio where market growth has slowed, and competition has intensified," Peck had then said.
A lowered full-year forecast accompanied that commentary. Zoetis cut its revenue outlook to the $9.68 billion to $9.96 billion range, from the $9.83 billion to $10.03 billion range previously expected. Adjusted earnings per share (EPS) were guided in the $6.85 to $7.00 range, from $7.00 to $7.10. The midpoints of both forecasts were below the consensus estimate.
Moreover, Q1 revenue and EPS were also below the average analyst estimate.
What Retail Traders Think About ZTS
On Stocktwits, retail sentiment toward the stock turned ‘neutral’ from ‘bearish’ over the last 24 hours.
ZTS shares have fallen roughly 43% so far this year and more than 53% over the past 12 months, underperforming the benchmark S&P index
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