Stifel Lowers Zoetis (ZTS) PT to $130, Maintains ‘Hold’ Due to Aggressive 2026 Revenue Outlook

Core Insights - Zoetis Inc. is currently viewed as a highly profitable large-cap stock, but recent adjustments to revenue forecasts have raised concerns about future growth potential [1][3] - Stifel analyst Jonathan Block has lowered the price target for Zoetis from $140 to $130 while maintaining a Hold rating, indicating a cautious outlook on the stock [1][3] Financial Performance - In Q3 2025, Zoetis reported total revenue of $2.4 billion, reflecting a 4% organic operational growth [2] - Adjusted net income for the quarter reached $754 million, which is a 9% increase on an organic operational basis, leading to a 12% growth in adjusted diluted EPS [2] - The company has revised its full-year revenue guidance to a range of $9.4 to $9.475 billion, indicating an expected organic operational growth of 5.5% to 6.5% [3] Future Outlook - The adjusted net income guidance for the full year is set between $2.8 to $2.84 billion, corresponding to a 5.5% to 7% organic operational growth [3] - Adjusted diluted EPS guidance is projected to be between $6.30 to $6.40 [3] - Despite the potential of Zoetis as an investment, there are suggestions that certain AI stocks may offer better upside potential with less downside risk [4]