Jazz Pharmaceuticals: Buy Rating Affirmed Amid Growth Potential and Transformative Catalysts

Analyst Jason Gerberry from Bank of America Securities reiterated a Buy rating on Jazz Pharmaceuticals (JAZZ – Research Report) and increased the price target to $216.00 from $213.00.

Jason Gerberry has given his Buy rating due to a combination of factors that highlight Jazz Pharmaceuticals’ potential for growth despite a recent revenue miss. The company’s first-quarter results showed a 9% revenue shortfall, primarily attributed to seasonal factors and fewer shipping weeks in the oncology segment. However, Gerberry views these as temporary issues and believes the company’s core business remains strong, with a low standard deviation growth profile that is not fully reflected in its current valuation. Jazz is trading at less than 5x EV/EBITDA, whereas Gerberry values it at 8x EV/EBITDA, indicating significant upside potential.
Additionally, Gerberry is optimistic about Jazz’s future prospects due to the anticipated Phase 3 GEA data expected in the second half of 2024, which he sees as a transformative catalyst not yet priced into the stock. The company’s management has also provided reassuring comments regarding tariff exposure, noting that key products like Xyrem and Xywav can transition to US manufacturing, mitigating potential tariff risks. These factors, combined with an increased price objective of $216, support Gerberry’s Buy rating for Jazz Pharmaceuticals.

According to TipRanks, Gerberry is a 4-star analyst with an average return of 3.3% and a 50.51% success rate. Gerberry covers the Healthcare sector, focusing on stocks such as Jazz Pharmaceuticals, Axsome Therapeutics, and Alkermes.

In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $205.00 price target.