UPDATE: Citigroup Reiterates On Zoetis Following Pershing Confirmation

In a report published Wednesday, Citigroup analyst Liav Abraham reiterated a Buy rating on Zoetis Inc (NYSE: ZTS), and raised the price target from $44.00 to $49.00.

In the report, Citigroup noted, “Following its accumulation of a 9.7% stake in AGN earlier this year, activist hedge fund Pershing Square has confirmed the accumulation of a 10% stake in ZTS. We assume that Pershing is interested in advocating for a sale of ZTS, potentially to VRX if its bid for AGN falls through. Apart from VRX, we note that others, including Bayer, could be interested in acquiring the company. We note CFO Paul Herendeen's commentary on last week's earnings call, which focused on maximizing shareholder value, while not ruling out a potential sale of the company. We anticipate that today's news will constitute the focus of attention at ZTS' analyst day next week (November 18th).”

Zoetis closed on Tuesday at $43.72.