Buy Rating Affirmed: Jazz Pharmaceuticals’ Resilient Base and Promising Pipeline Drive Positive Outlook

Bank of America Securities analyst Jason Gerberry reiterated a Buy rating on Jazz Pharmaceuticals (JAZZ – Research Report) yesterday and set a price target of $172.00.

Jason Gerberry has given his Buy rating due to a combination of factors including the resilience of Jazz Pharmaceuticals’ base business and the potential of their pipeline. Despite a slight revenue shortfall in the first quarter, Gerberry is optimistic about the company’s durable performance, particularly with their Xywav product. He views the transitional revenue dip as short-term and expects stronger patient growth and better net pricing to benefit future quarters. Furthermore, he is encouraged by the lack of significant competition to Xywav and Jazz’s strategies to counter generics, which he believes will minimize risks related to the Xyrem business.

Gerberry also appreciates the company’s prudent approach to mergers and acquisitions, as indicated by the new CFO’s commitment to financial discipline rather than pursuing deals solely to meet future revenue targets. This conservative stance on capital deployment is seen as a positive, ensuring that any acquisitions will be value-accretive rather than just to fulfill aspirational targets. Collectively, these elements contribute to a valuation that Gerberry finds attractive, with a price objective reflecting confidence in the company’s strategic direction and the anticipated data on their Phase 3 Zani 1L GEA by the end of 2024.

In another report released yesterday, Barclays also assigned a Buy rating to the stock with a $230.00 price target.

JAZZ’s price has also changed moderately for the past six months – from $127.340 to $110.310, which is a -13.37% drop .

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Jazz Pharmaceuticals (JAZZ) Company Description:

Jazz Pharmaceuticals Plc operates as a specialty biopharmaceutical company, which focuses on the identification, development and commercialization of pharmaceutical products in the areas of narcolepsy, oncology, pain and psychiatry. Its product portfolio includes: XYREM, ERWINAZETM, PRIALT, intrathecal infusion, FAZACLO and LUVOX CR. The company was founded by Bruce C. Cozadd in March 2003 and is headquartered in Dublin, Ireland.