Zoetis Analysts Day ‘Modestly Underperform’ – Goldman Sachs trendswire
Analysts at BofA and Goldman Sachs differed in their views after Zoetis (NYSE:) analyst day, which took place on Thursday.
Goldman Sachs, which maintained a Buy rating on the stock, said in a research note in reaction to the event that ZTS “was modestly underperforming.”
“While its new long-term outlook was largely consistent with expectations, it incorporated a wider-than-expected range of earnings (MSD-HSD vs. GS expecting ~HSD) and lacked detail on other P&L items (p eg, margins, NI growth)”. stated the investment bank.
However, they noted that while the lack of updates on market trends and uncertainty about competitive launches are likely to remain an issue in the near term, “information on the portfolio should help build confidence in the growth outlook.” “.
Meanwhile, BofA analysts said the company provided enough information, despite its reluctance to be too specific.
“We believe that mgmt was reluctant to be too specific in its financial outlook in order to preserve some financial flexibility in the coming years, particularly as competition enters the market in several key product areas,” said the analysts, who maintained a recommendation. of Purchase and a price of $200. target in action.
“Overall, we believe that management has addressed the key questions about the stock and provided sufficient insight into what the ‘Zoetis future’ looks like, even if the more specific details will only become clearer with time.”