Phibro's Feed Play Pays Off: JPMorgan Upgrades On Zoetis Deal Boost

JPMorgan upgraded Phibro Animal Health Corporation (NASDAQ:PAHC), citing strong execution following its $350 million acquisition of Zoetis' medicated feed additive and water-soluble product portfolio.

The deal includes 37 product lines sold in about 80 countries, six manufacturing sites across the U.S., Italy, and China.

Analysts expect the portfolio to enhance Phibro's profitability, improve EBITDA margins, and be accretive to adjusted earnings per share.

Also Read: Zoetis Avian Influenza Vaccine Secures Conditional Approval In US For Use In Chickens

Analyst Ekaterina V Knyazkova on Monday wrote that animal health performance has exceeded expectations for 2025 supported by strong demand, price increases and healthy growth across MFAs, Nutritional Specialties and Vaccines for 2026.

In the animal health industry, growth in livestock is slower than in companion animals, and this trend is likely to continue, Knyazkova added.

However, the livestock sector still has strong fundamentals—such as population growth, rising meat consumption, and limited impact from economic shifts. Phibro Animal Health stands to benefit following the acquisition of Zoetis' medicated feed additives business.

In the third quarter of 2025, the company’s sales reached $347.8 million, an increase of $84.6 million, or 32% year over year, missing the consensus of $352.40 million.

Adjusted earnings was 63 cents, beating the consensus of 52 cents.

Phibro Animal Health raised its fiscal 2025 adjusted earnings per share guidance from $1.87-$2.01 to $1.96-$2.09 compared to the consensus of $1.94.

It revised its sales guidance from $1.25 billion-$1.30 billion to $1.26 billion-$1.29 billion versus consensus of $1.28 billion.

Analyst Knyazkova writes, “And while PAHC shares have had a strong run this year, we continue to see a favorable setup from here between the upside to estimates and the still-attractive valuation.”

Price Action: PAHC stock is up 8.57% at $30.40 at the last check on Monday.

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