ZTS - Embedded Expectations Analysis - 2019 07 02
Zoetis Inc. (ZTS:USA) currently trades at historical highs relative to UAFRS-base (Uniform) Earnings, with a 34.4x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about livestock markets, their portfolio growth, and the potential of the Apoquel launch.Specifically, management may be concerned about cattle and swine markets, the launch of Apoquel in China, and their ability to grow due to the future emergence of diseases. Also, they may lack confidence in their ability to sustain growth in Brazilian and Chinese markets, their dermatology portfolio, and Simparica revenue. Furthermore, they may be concerned about young animal product testing, lead generation in the diagnostics market, and the promotion of their dermatology portfolio. In addition, they may be exaggerating the strength of their portfolio, positive market dynamics, and the potential global market for Apoquel.
Zoetis is a holding company. Through its subsidiaries, the company is engaged in the discovery, development, manufacture and commercialization of animal health medicines, vaccines, and diagnostic products with a focus on both livestock and companion animals. The company operates in two segments: the United States and International. The company's main product categories are vaccines, anti-infectives, parasiticides, other pharmaceutical products, dermatology products, medicated feed additives, and animal health diagnostics. The company's other non-pharmaceutical product categories include nutritionals and agribusiness, as well as products and services including biodevices, genetic tests and precision livestock farming.
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