UPDATE: Hilliard Lyons Initiates Zoetis at Neutral on Valuation

Hilliard Lyons initiated coverage on Zoetis (NYSE: ZTS) with a Neutral rating.

Hilliard Lyons commented, "ZTS is the first major participant in the global animal health business available to those interested in investing in the sector, which might explain some of the strong initial interest. ZTS shares rose nearly 20% in the first day of trading and have moved higher since. Using our 2013 EPS estimate, ZTS trades at a P/E of about 27 times, an appropriate valuation, in our view."

Zoetis closed at $34.18 on Monday.