Zoetis climbs after unveiling $1.75 bln convertible offering for stock buybacks

Animal healthcare firm Zoetis' ZTS.N shares reverse premarket losses and last up 1.9% at $120.91 on Mon as it seeks capital to buy back stock

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

It intends to use net offering proceeds to repurchase common stock no later than end of Q1 2026

Co also plans to use proceeds to fund cost of capped calls, derivative transactions employed to help mitigate potential dilution

With ~440.7 mln shares outstanding, ZTS has ~$53 bln current 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

With the moves on the session, ZTS shares down ~26% YTD and well underperforming ~13% advance in S&P 500 Healthcare index .SPXHC and 16% gain in S&P 500 .SPX

Per latest LSEG data, 14 of 19 a nalysts rate shares "strong buy" or "buy", 5 have "hold"; median PT of $160 down from $197.50 on Sept 15