UPDATE: Bank of America Upgrades Zoetis to Buy Citing Renewed Focus on Profit Margins

In a report published on Thursday, Bank of America Merrill Lynch analyst Robert M. Willoughby upgraded Zoetis Inc.

to a Buy rating and maintained a price target of $35. In the report, Bank of America Merrill Lynch noted, "On annual revenue growth of 4%-6%, ZTS should grow its EBITDA margin by 315 bps in 2013 and 246 bps in 2014, aided by a new ERP system, changes in manufacturing and supply chain processes that should also reduce inventory, modified health and pension plans, and more cost effective real estate management." Zoetis closed on Wednesday at $29.29.