Goldman Sachs analyst Nathan Rich started Zoetis with a Buy rating and $145 price target and added the shares to his firm's Americas Conviction List. The analyst sees "compelling" long-term value in the stock from the anticipated launch of Simparica Trio in Q1 of 2020, which he thinks could become the first billion-dollar animal health drug and has the potential to deliver "significant upside" to consensus estimates. Rich initiated coverage of the Animal Health industry and recommends a selective approach. The positive long-term fundamental drivers of the industry, particularly in the companion animal space, appear increasingly reflected in valuations, the analyst tells investors in a research note.

Barclays lowered the firm's price target on Zoetis to $230 from $260 and keeps an Overweight rating on the shares ahead of the Q1 report. The analyst expects the Q1 reports to provide continuing evidence of improvement in generics and biosimilars for the specialty pharmaceuticals group.

Jefferies analyst Glen Santangelo lowered the firm's price target on Zoetis (ZTS) to $200 from $220 and keeps a Hold rating on the shares. Zoetis shares are down year-to-date on several factors, with the two most significant being Librela safety concerns and pending competition launches from Elanco (ELAN), the analyst tells investors in a research note. The firm, however, conducted a survey of 35 veterinarians and says the data looks largely positive for Zoetis. While the competitive landscape around key products bears monitoring, the stock's current valuation discount "seems overly punitive," contends Jefferies. The firm believes this "battered expectation level represents an attractive buying opportunity" ahead of the company's Q1 report. Jefferies notes that 100% of the 35 of vets it surveyed are happy, either very or somewhat, with Librela efficacy while 97% were neutral to happy with the safety profile. Meanwhile, 50% of respondents expect osteoarthritis pain scripts to growth 11%-30% in the next two years, the firm adds.