Jazz Pharmaceuticals: Underappreciated Growth Story with Durable Sleep Franchise and Pipeline-Driven Upside

Analyst Joseph Thome of TD Cowen reiterated a Buy rating on Jazz Pharmaceuticals, retaining the price target of $220.00.

Joseph Thome has given his Buy rating due to a combination of factors, including Jazz’s ability to outperform expectations in the latest quarter and its constructive multi‑year outlook. He highlights that Q4 revenue exceeded consensus, driven largely by Xywav and complemented by solid contributions from Epidiolex, Zepzelca, and Modeyso, signaling resilient demand across the portfolio despite intensifying competition in sleep disorders.

Moreover, he points to management’s 2026 revenue forecast of $4.25–$4.5 billion, including a robust sleep-franchise target and stable-to-growing Xywav sales, as evidence of durable growth. Thome also views the launch trajectory of Modeyso and the advancing pipeline—particularly Ziihera’s expansion plans and additional early‑stage assets—as underappreciated catalysts, leading him to argue that JAZZ’s current valuation does not fully reflect the strength of its marketed products or its longer‑term upside potential.