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Piper Sandler Flags Near-Term Uncertainty for Zoetis (ZTS) Despite Long-Term Appeal

Zoetis Inc. (NYSE:ZTS) is included among the 12 Most Profitable Dividend Stocks to Buy in 2026.

Budimir Jevtic/Shutterstock.com

On January 22, Piper Sandler downgraded Zoetis Inc. (NYSE:ZTS) to Neutral from Overweight. It also slashed its price target to $135 from $190. The firm said it still likes Zoetis’ product portfolio over the long run, but sees too much uncertainty in the next couple of years. Until more new products actually reach the market, Piper is hesitant to lean on current forecasts.

The analyst described the company as being in an innovation lull, saying Zoetis “is in an innovation air pocket that could last one to two years.” Piper also questioned whether the current consumer spending backdrop supports the price points tied to the company’s planned 2026 launches, especially when viewed through a value-for-money lens.

That caution stands in contrast to how Zoetis has been positioning itself. During its Innovation Webcast on December 2, the company emphasized the breadth of its pipeline, which spans multiple species, therapeutic areas, and stages of development. Management pointed to 12 candidates with blockbuster potential, including programs targeting chronic kidney disease, oncology, and cardiology. The pipeline also includes next-generation treatments in established franchises such as osteoarthritis pain and dermatology.

Looking further out, Zoetis highlighted work underway in areas like anxiety and metabolic diseases, including diabetes and obesity. The strategy is deliberately balanced, combining geographic expansion, lifecycle extensions, and entirely new products. Management framed this approach as a way to both strengthen existing franchises and push the industry forward.

Zoetis Inc. (NYSE:ZTS) is a global animal health company focused on developing and commercializing medicines, vaccines, diagnostics, biodevices, genetic tests, and precision health tools for animals.

While we acknowledge the potential of ZTS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZTS and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: Dividend Contenders List: Top 20 Stocks and 15 Best High Yield Stocks To Buy.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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