Raymond James sees difficult Q3 for animal health firms

PetIQ

25/10/2022 18:04

** Raymond James lowers third-quarter sales estimates for
several animal health companies such as Elanco Animal Health 
 ELAN.N  and Zoetis Inc  ZTS.N  on a hit from a stronger dollar
and lower vet clinic visits 
    ** Brokerage cuts PT of PetIQ Inc  PETQ.O  to $16 from $21
on macroeconomic uncertainty 
    ** Analyst says veterinary visit trends, inflation and
foreign exchange impacts will effect sector at least through
second quarter of 2023 
    ** No sign of demand impact has yet to really be exhibited
regardless of the increasing prices but question still remains
as to how long these defensive inflation positioning can remain
sustainable - brokerage 
   ** In August, J.P. Morgan said vet capacity constraints and
lowered clinic visits are likely to improve in 2023 
 (Reporting by Sriparna Roy)
 ((Sriparna.roy@thomsonreuters.com))