UPDATE: Jefferies Initiates Zoetis at Buy on Strong Growth Profile

Jefferies initiated coverage on Zoetis ZTS with a Buy rating and a $40.00 price target. Jefferies analyst Jeffrey Holford commented, "Zoetis deserves a premium rating due to its strong underlying growth profile, combined with the valuation accelerants of significant operating margin expansion, capital allocation upside and its scarcity value. We see mid-term EPS 12%-17% ahead of the initial consensus estimates and set a 12-month PT of $40." Zoetis closed at $33.82 on Tuesday.