Bullish indicating open at $55-$60, IPO prices at $37
On Thursday, Truist Securities updated its outlook on Jazz Pharmaceuticals (NASDAQ:JAZZ), increasing the price target to $230 from the previous $220, while reiterating a Buy rating on the company’s stock. The new target represents significant upside potential from the current trading price of $140.23. According to InvestingPro data, Jazz Pharmaceuticals currently appears undervalued based on its Fair Value analysis. The adjustment follows Jazz Pharmaceuticals’ announcement of its intention to acquire Chimerix (NASDAQ:CMRX) in a cash transaction valued at $935 million, or $8.55 per share. This acquisition is poised to be completed in the second quarter of 2025.
The forthcoming acquisition of Chimerix by Jazz Pharmaceuticals is strategically timed ahead of the PDUFA date for dordaviprone, which has been granted priority review and is scheduled for August 18, 2025. Jazz approaches this acquisition from a position of financial strength, with InvestingPro analysis showing impressive gross profit margins of 92.36% and a healthy current ratio of 4.46, indicating strong liquidity to support the transaction. Analysts at Truist Securities have incorporated the potential of dordaviprone into their valuation of Jazz Pharmaceuticals, citing its promising therapeutic application for H3 K27M-mutant diffuse glioma, a rare form of brain cancer.
The valuation model assumes an incidence of approximately 2,000 cases in the U.S. and applies a pricing strategy consistent with similar rare cancer drugs, estimated at $35,000 per month. Peak sales for dordaviprone are projected to reach $800 million by 2037 for both recurrent and non-recurrent cases of the disease. An 85% probability of success has been factored into the valuation, leading to the raised price target.
In addition to the raised price target, Truist Securities has also increased its revenue forecast for Jazz Pharmaceuticals in 2026 to $4.57 billion, up from the previous estimate of $4.55 billion. This optimistic outlook aligns with broader analyst sentiment, as InvestingPro reveals that six analysts have recently revised their earnings estimates upward. For deeper insights into Jazz Pharmaceuticals’ financial health and growth prospects, investors can access the comprehensive Pro Research Report, which provides detailed analysis of key metrics and growth drivers. This revision is based on the expectation that dordaviprone will be launched shortly after its anticipated approval date. The acquisition and the promising prospects of dordaviprone are expected to contribute positively to Jazz Pharmaceuticals’ financial performance in the near term.
In other recent news, Jazz Pharmaceuticals reported its Q4 2024 financial results, surpassing analyst expectations with an earnings per share (EPS) of $6.60, compared to the forecasted $5.79. The company’s revenue for the quarter reached a record $1.1 billion, exceeding the anticipated $1.06 billion. Jazz Pharmaceuticals has projected 2025 revenue growth of 5%, aiming for $4.15-$4.4 billion. Additionally, Needham analyst Ami Fadia raised the company’s stock price target to $210, citing positive developments such as the Epidiolex settlement extending into the late 2030s and promising updates on their drug trials. Meanwhile, RBC Capital Markets slightly reduced its price target for Jazz Pharmaceuticals to $178, maintaining an Outperform rating, reflecting a cautious stance on long-term growth due to pipeline and leadership uncertainties. The company’s sleep franchise, particularly its Idiopathic Hypersomnia treatments, continues to perform robustly, alongside the cannabis-derived drug Epidiolex. Jazz Pharmaceuticals also highlighted the FDA approval for Xyhara and expressed confidence in the potential of their R&D pipeline, despite some delays in drug trial results.
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