On Tuesday, Zoetis Inc . (NYSE: NYSE:ZTS), a global animal health company, had its price target lowered by Piper Sandler from $220.00 to $195.00. Despite the reduction, the firm maintained its Overweight rating on the company's stock. The adjustment follows recent concerns raised by social media posts and pet owners regarding Zoetis's product, Librela.
Last week, an article was published that spotlighted the social media discussions and concerns of pet owners about Librela, a drug developed by Zoetis. According to Piper Sandler, the anticipation and subsequent release of the article have placed significant downward pressure on Zoetis's stock price.
However, the firm's research suggests that the veterinary community still holds a positive view of Librela. Piper Sandler's checks with veterinarians and practice owner groups revealed continued support for the product, leading them to believe that the impact from social media worries will be minimal.
In response to the situation, Piper Sandler has adjusted its model and price target to what it considers a "bear case scenario" for Librela. The firm expressed that the decline in Zoetis's stock price since February is more than what they would have anticipated even in a worst-case scenario.
Piper Sandler emphasized its ongoing confidence in Zoetis by reiterating the Overweight rating, while updating the price target to $195. The firm's stance reflects an expectation that the current concerns will not significantly impact the long-term performance of Librela or Zoetis.
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