Health and Healthcare

Credit Suisse Identifies 5 Stocks to Buy Winning From Your Pet's Health

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Credit Suisse made a point to highlight a few animal health companies that stand to outperform the markets in 2016 and even beyond. Most investors might not consider investing because this can be somewhat of a niche industry, but some of the best value can be found in these types of industries.

24/7 Wall St. has put together a montage of these companies and their respective ratings. We have also included the consensus price target, a recent trading history and the 52-week trading range.

Zoetis Inc. (NYSE: ZTS) coverage was initiated with an Outperform rating and a $58 price target. This is Credit Suisse’s top-rated animal health company. As the global leader in therapeutics for livestock and companion animals, Zoetis is highly levered to rebounding industry fundamentals, and earnings growth should accelerate over an improving cost and capital structure. The firm’s focus is on underappreciated efficiency initiatives that should drive over 900 basis points operating margin expansion by 2017, a considerable feat for a company of its size that ensures double-digit earnings growth in 2017 and beyond. Shares of Zoetis were trading at $41.37 on Thursday, with a consensus analyst price target of $51.82 and a 52-week trading range of $37.73 to $55.38.

IDEXX Laboratories Inc. (NASDAQ: IDXX) was initiated with an Outperform rating and an $80 price target. Following a transition year, IDEXX is well-positioned in an improving animal health market with primary drivers in innovation, an expanding installed base and broader geographic expansion as its direct distribution strategy matures, which should fuel the stock by over 10%. Shares of IDEXX were trading at $71.68, with a consensus price target of $67.17 and a 52-week range of $61.37 to $82.24.


VCA Inc. (NASDAQ: WOOF) was initiated with an Outperform rating and a $63 price target. This company’s market leadership in veterinary hospital and laboratory services, improving industry demand, a focus on specialty services and vibrant M&A pipeline should translate into greater revenue and profit opportunities. Shares of VCA were trading at $49.83, with a consensus price target of $64.00 and a 52-week range of $44.00 to $62.45.

Aratana Therapeutics Inc. (NASDAQ: PETX) was initiated with an Outperform rating and an $11 price target. This emerging biopharmaceutical company is focused on the companion animal market. It boasts one of the most robust pipelines of novel therapeutics in the industry, including over 15 candidates in development, scaling up rapidly from just three in 2013 through several acquisitions, partnerships, and licensing collaborations. We expect a meaningful revenue opportunity near term on several product launches slated for 2016, with profitability expected in 2019. Aratana shares were trading at $3.61, with a consensus analyst target of $13.33 and a 52-week range of $2.65 to $20.63.

Nexvet Biopharma PLC (NASDAQ: NVET) was initiated with an Outperform rating and an $11 price target. This emerging biopharmaceutical company concentrates on monoclonal antibodies and biologics for companion animals. With a pipeline of 15 active programs, the company’s product launches beginning in fiscal should drive exponential revenue growth with profitability expected in fiscal 2020. Nexvet shares were trading at $3.42, with a consensus price target of $13.67 and a 52-week range of $2.85 to $11.30.

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