Zoetis (ZTS) Stock Higher in After-Hours Trading After Valeant Takeover Approach

NEW YORK (TheStreet) -- Shares of Zoetis (ZTS) were gaining 1.2% to $56.05 after-hours on Thursday following a report that drug manufacturer Valeant Pharmaceuticals (VRX) is potentially interested in acquiring the animal health company.

Valeant recently made a preliminary approach to acquire Zoetis, according to the Wall Street Journal. It's not clear how Zoetis reacted to Valeant's approach, of if the company is open to selling itself.

Zoetis executives recently said the company is interested in buying assets in order to expand, but analysts view the company as a potential takeover target, according to the Journal.

Zoetis stock closed up 11.4% at an all-time high of $55.38 Thursday as news of Valeant's approach broke minutes before the market closed.

Zoetis produces medicine and vaccinations for pets and livestock and was spun off of drug manufacturer Pfizer (PFE) in 2013.

TheStreet Ratings team rates ZOETIS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ZOETIS INC (ZTS) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, good cash flow from operations, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

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