Jefferies analysts reported Friday that veterinary clinic foot traffic, after an 18-month downtrend, appeared to level off in March. The firm described March’s data as showing flat traffic, a departure from the steady declines recorded over the prior year-and-a-half.
The analysts attributed the extended decline in vet visits to a normalization of demand following the pandemic period. In that context, the March flattening represents a potential pause in the contraction rather than a clear rebound.
Limits of foot traffic as an industry metric
Jefferies emphasized that foot traffic measurements do not capture the entire veterinary services landscape. The report highlights the growing role of telehealth providers in the sector, noting these services have captured a portion of market share by offering pet owners greater convenience and lower-cost options. As a result, in-person visit counts may understate overall consumer engagement with veterinary services.
Analyst positioning on public animal-health companies
Reflecting their view of the sector, Jefferies has maintained Buy ratings on three publicly traded animal-health companies: IDEXX Laboratories (NASDAQ:IDXX), Zoetis (NYSE:ZTS) and Elanco Animal Health (NYSE:ELAN). The report did not provide changes to those ratings in the release issued Friday.
Implications for market participants
Investors and industry observers should read the March foot traffic stabilization alongside the report’s caveat about telehealth share gains. Because the foot traffic metric focuses on physical visits, it offers an incomplete picture of total service demand when virtual offerings are expanding.
Conclusion
Jefferies’ Friday note frames March’s flat vet foot traffic as a potential shift after 18 months of declines, while also warning that telehealth adoption complicates straightforward interpretation of in-person visit data. The firm’s Buy ratings on IDXX, ZTS and ELAN remain in place.