Needham lifts Jazz Pharmaceuticals stock target to $210

Published 26/02/2025, 14:31
Updated 26/02/2025, 14:32
Needham lifts Jazz Pharmaceuticals stock target to $210

Wednesday - Jazz Pharmaceuticals (NASDAQ:JAZZ) shares are expected to rise following the company’s recent earnings release and several positive updates that might be well-received by investors. The stock, currently trading near its 52-week high of $140.52, has shown strong momentum with a 22% gain over the past six months. According to InvestingPro analysis, the company maintains a "GREAT" financial health score of 3.57 out of 5. Needham analyst Ami Fadia increased the price target on the stock to $210 from the previous $205 while maintaining a Buy rating.

Fadia’s optimism stems from multiple factors, including the announcement of a settlement with all ANDA filers on Epidiolex, which will now allow entry in the "very late 2030s." Additionally, the delay in the readout of Zani’s GEA trial to the second half of 2025, due to a slower than anticipated event rate, is potentially seen as an encouraging sign for the drug’s prospects. The company’s impressive gross profit margin of 92.6% demonstrates strong operational efficiency in its pharmaceutical portfolio.

Management commentary on the sustainability of Xywav, stabilization of Rylaze, and the potential for extending Zepzelca’s intellectual property were also highlighted as positive developments. Furthermore, Jazz Pharmaceuticals provided financial guidance for 2025, with the mid-point of revenue projections at approximately $4.275 billion, aligning with consensus estimates.

The mid-point of the research and development (R&D) budget was reported to be around 15% below expectations, which could indicate a more efficient allocation of resources or a shift in the company’s development strategy. In response to these updates, Needham revised its model for the fourth quarter and the 2025 guidance, extending the Epidiolex runway to 2037, which contributed to the raised price target for Jazz Pharmaceuticals stock.

In other recent news, Jazz Pharmaceuticals announced its Q4 2024 earnings, reporting an earnings per share (EPS) of $6.60, which exceeded analyst forecasts of $5.79. The company’s revenue for the quarter reached $1.1 billion, surpassing the anticipated $1.06 billion. Jazz Pharmaceuticals also reported total annual revenue of $4.1 billion, reflecting a 6% year-over-year growth. The company projects a 5% revenue growth in 2025, estimating revenues between $4.15 billion and $4.4 billion. Additionally, Jazz Pharmaceuticals achieved FDA approval for its product Xyhara, marking significant progress in its product portfolio. Analyst firms have not indicated any recent upgrades or downgrades for the company’s stock. Despite the positive earnings and product developments, the stock experienced a decline of 1.55% in after-hours trading.

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