Investing.com -- Zoetis Inc remains a standout in the struggling animal health sector, benefiting from its pricing power and portfolio of irreplaceable therapeutics, according to a Piper Sandler survey.
While macroeconomic challenges persist, which includes stagnant veterinary visits and hiring difficulties, Zoetis (NYSE:ZTS) is gaining market share and is well-positioned to meet its growth target.
“We think we're coming close to an inflection point where less negative visits will turn positive, but we don't yet have confidence we're six months away,” Piper analyst said.
Products such as Librela, despite regulatory scrutiny, continue to see strong veterinary support.
Piper Sandler highlighted ongoing headwinds for the broader sector, with market volume growth potentially delayed until late 2025 or early 2026. Labor shortages and limited consumer tolerance for price increases are further dampening growth prospects.
Zoetis is Piper Sandler’s only overweight-rated stock in the sector. “We believe it has a number of therapeutics that cannot be replaced and can see price increases but even they will have challenges in the current macro environment”