Established Leader In Attractive Market; Near-Term Headwinds Look Manageable

Research evidence excerpt

Established Leader In Attractive Market; Near-Term Headwinds Look Manageable

TD Cowen Pharmaceuticals/Major: Animal Health

Global Research

Zoetis

TD SECURITIES (USA) LLC

July 14, 2026

Price: $74.07 (07/14/2026) Established Leader In Attractive Market;

Price Target: $104.00 Near-Term Headwinds Look Manageable

BUY (1)

Steve Scala, R.Ph., CFA THE TD COWEN INSIGHT

617 946 3923

Animal health market fundamentals remain compelling, but there are near-term headwinds

stephen.scala@tdsecurities.com

including competition and slower than expected OA pain rollout. Still, ZTS is the established

Michael Nedelcovych, Ph.D. leader in Animal Health with a broad, diversified product portfolio and opportunity for

617 946 3744 continued leveraged EPS growth. Pipeline products for untapped Pet Health markets could

michael.nedelcovych@tdsecurities.com

add upside.

Chris LoBianco

617 946 3734 Estimated 2026 EPS Growth Of +11%, Leveraged +7-9% EPS Growth For 2027-32

chris.lobianco@tdsecurities.com

We estimate 2026 revenue of $9.7B (+4%) and EPS of $6.90 (+11%) as strong end-market

Paul Kuhn, Ph.D. demand in Livestock (+10%) partially offsets competitive pressure on Key Derm (-4%)

646 562 1328

and Simparica Franchise (+6%). All told, Zoetis's innovation franchise brands (Key Derm,

paul.kuhn@tdsecurities.com

Simparica/Trio, and OA pain mAbs) are expected to post low-single-digit growth of +2% in

Key Data 2026 (a slow-down versus +6% growth in 2025). Beyond 2026, we estimate Zoetis 2027-32 total

Symbol NYSE: ZTS revenue growth of +4-6% per year and leveraged EPS gains of +7-9% per year.

Beta: 0.75

Long-Term Growth For Key Derm And Trio Keyed To Market Expansion To Offset Intensifying

52-Week Range: $156.76-$71.86

Competition; Long-Acting Cytopoint Could Defend Share, Grow Market

Market Cap: $31.1B