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Investing.com - Deutsche Bank (ETR:DBKGn) initiated coverage on Jazz Pharmaceuticals (NASDAQ:JAZZ) with a Buy rating and a price target of $152.00 on Tuesday. The company, currently trading at a P/E ratio of 14.2x and maintaining impressive gross profit margins of 92%, appears undervalued according to InvestingPro analysis.
The firm notes that Jazz shares started 2025 positively following a favorable intellectual property settlement for Epidiolex, before facing pressure around Liberation Day on April 2, 2025.
Deutsche Bank attributes the stock’s subsequent decline primarily to macro developments, including President Trump’s threats of pharmaceutical tariffs and Most Favored Nation pricing, which particularly affect Irish-domiciled companies like Jazz with significant international exposure.
Despite these concerns, Deutsche Bank believes the current discount is not entirely warranted, as it expects Jazz to enter a period of value creation in the second half of 2025 through 2027, characterized by expansion of its Oncology business and resilience in its Neuroscience segment.
The firm points to the recent 20-25% selloff as providing an attractive entry point for investors, citing expectations for growth in revenues, earnings per share, and free cash flow.
In other recent news, Jazz Pharmaceuticals has announced that Renee Gala will take over as the new President and CEO, effective August 11, 2025, following the retirement of co-founder Bruce Cozadd. Gala, who is currently the President and Chief Operating Officer, will also join the company’s Board of Directors. Additionally, the European Commission has granted conditional marketing authorization for Jazz Pharmaceuticals’ Ziihera for treating HER2-positive biliary tract cancer, marking a significant development in cancer treatment within the European Union. This follows the drug’s accelerated approval by the U.S. FDA in 2024 and conditional approval in China in 2025.
Moreover, the FDA has accepted a Priority Review for Jazz Pharmaceuticals’ Zepzelca in combination with atezolizumab for extensive-stage small cell lung cancer, with a decision expected by October 7, 2025. The Phase 3 IMforte trial showed that the combination therapy improved progression-free and overall survival rates compared to the standard treatment. Analyst firms Stifel and UBS have both maintained their Buy ratings for Jazz Pharmaceuticals, citing promising trial data and developments in cancer treatments. Stifel has set a price target of $230.00, while UBS has set it at $164.00, reflecting continued confidence in the company’s growth potential.
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