Stifel expects demand for veterinary pharma to persist as markets reopen

Vetoquinol SA

31/01/2022 12:38

** Stifel sees bright prospects for the veterinary
pharmaceutical market thanks to growing demand for products
driven by increased pet ownership during the pandemic
    ** Stifel says the sector's growth should remain robust even
if it is set to moderate as economies reopen
    ** With the recent sell-off in the sector driven by sector
rotation, opportunities exist to build positions within the
space, it adds
    ** Stifel prefers Dechra  DPH.L , Vetoquinol  VETO.PA  and
Zoetis  ZTS.N , all rated "buy"
    ** For Zoetis - the broker's favourite among U.S. names -
Stifel sees further revenue upside and a progressively bigger
contribution from its injectables used to ease osteoarthritis
pain in cats and dogs
    ** It expects Dechra to keep delivering strong revenue
growth with new product Tri-Solfen due for European approval in
H1 2022 
    ** Vetoquinol should see further margin improvement with
increasing focus on acquiring products, targeting its core
therapeutic areas across key species
    ** The broker names Animalcare  ANCR.L  ("buy") as an
attractive opportunity to invest in a small emerging player
    ** Elanco  ELAN.N  ("hold") offers an attractive valuation,
Stifel says, but warns it may see slower sales of Credelio and
Interceptor PLUS, and increased competition to Galliprant from
Zoetis's injectable monoclonal antibodies

 (Reporting by Dagmarah Mackos)
 ((dagmarah.mackos@thomsonreuters.com))