Consolidator Survey Most Positive in Years

研报英文原文证据摘录

Consolidator Survey Most Positive in Years

General Takeaways

We were impressed by the prevailing optimism regarding both price and volume across the industry, with the strength of pricing power proving

particularly surprising. We attribute this resilience to the "aging pet" phenomenon, where the necessity of care for older animals creates a structural

demand floor that, when combined with improving visit data, gives us higher confidence in a 2027 recovery. While overall industry sentiment remains

stable, we believe this tempered outlook reflects an uncertain macro environment and a disciplined consumer base that continues to prioritize essential

care while remaining cautious with discretionary spending.

Stocks:

• IDEXX is the most impacted by improving veterinary macro.

• Zoetis is navigating a challenging inflection point as it balances near-term competitive headwinds against a long-term innovation pipeline. While the

company has historically had a premium valuation with revenue growth above the industry average, that growth engine is currently in transition due

to market stabilization challenges within the Librela franchise and intensified competition in the U.S. companion animal market. This combination has

created a temporary vacuum in the company’s product cycle, and we maintain a Neutral rating as we await the commercial traction of the 2027

launch slate, including long-acting Cytopoint and the next-generation OA pain portfolio.

• Elanco has strategically pivoted toward high-value, chronic pet care and innovation-led farm solutions, which has created a more resilient, complete

portfolio. We continue to believe they can be successful into next year with products such as Experior and Quattro. We view Elanco as a compelling