1. Zoetis Inc. (NYSE:ZTS)
Number of Hedge Fund Holders: 55
Zoetis Inc. (NYSE:ZTS) is a global company that specializes in animal health products, including medicines, vaccines, and diagnostics. Piper Sandler analyst David Westenberg lowered the price target on Zoetis Inc. (NYSE:ZTS) to $210 from $220 while maintaining an ‘Overweight’ rating. This adjustment was made after updating estimates to align with the company’s earnings release, mainly focusing on operating expenses and margin forecasts in line with guidance.
Rokos Capital Management joined the Zoetis Inc. (NYSE:ZTS) bandwagon in the second quarter of 2022 by purchasing shares worth $21.23 million but promptly exited in the first quarter of 2023, completely divesting its stake.
According to Insider Monkey’s first quarter database, 55 hedge funds in the database of Insider Monkey held stakes worth $1.19 billion in Zoetis Inc. (NYSE:ZTS), down from 58 in the preceding quarter worth $1.50 billion. William Von Mueffling’s Cantillon Capital Management is the biggest position holder in the company, with 1.79 million shares worth $ 297.7 million.
In its investor letter for Q1 2023, Baron Funds stated the following regarding Zoetis Inc. (NYSE:ZTS):
“Zoetis Inc. (NYSE:ZTS) is a global leader in the discovery, development, and manufacturing of companion and farm animal health medicines and vaccines, selling in more than 120 countries across eight core species. Shares rose after the company reported a fourth quarter revenue beat and issued 2023 guidance that met Street forecasts, calling for 6% to 8% operational growth and 7% to 9% adjusted net income growth despite higher R&D spend on late-stage pipeline products and manufacturing spend. Zoetis, which is growing 100 to 200 basis points above the industry’s 4% to 5% CAGR, should benefit from expanding demand for animal health products, driven by increasing consumption of animal proteins and the humanization of pets. Five key catalysts include products for osteoarthritis pain, parasiticides, dermatology, diagnostics, and emerging markets. Longer term, Zoetis should be able to achieve double-digit earnings growth on consistent revenue increases and an improving cost structure due to a more favorable product/species mix and manufacturing efficiencies. Strong operating cash flow helps facilitate capital deployment opportunities to supplement expansion.”
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