Zoetis dips after unveiling $1.75 bln convertible for stock buybacks

Animal healthcare firm Zoetis' ZTS.N shares down 0.6% at $118 before the bell as it seeks capital to buy back stock

Parsippany, New Jersey-based ZTS announces private offering of $1.75 bln convertible notes due June 2029

It intends to use net offering proceeds to repurchase common stock and to fund cost of capped calls, derivative transactions employed to help mitigate potential dilution

With ~440.7 mln shares outstanding, ZTS has ~$52 bln market cap

Co last month trimmed its annual rev forecast on softer demand for its medicines and vaccines for pets and livestock, sending its shares to lowest in over 5 years

As of Fri close, ZTS shares down 27% YTD and well underperforming ~12% advance in S&P 500 Healthcare .SPXHC and 16% gain in S&P 500 .SPX

14 of 20 a nalysts rate shares "strong buy" or "buy", 6 have "hold"; their median PT of $160 down from $197.50 on Sept 15, per LSEG data