UBS maintains buy rating on Jazz Pharmaceuticals stock after positive trial data

On Tuesday, UBS analysts reaffirmed a Buy rating for Jazz Pharmaceuticals stock (NASDAQ:JAZZ) with a price target of $164.00. Currently trading at $108.29, the stock appears undervalued according to InvestingPro analysis, with analyst targets ranging from $125 to $230. The decision follows a group KOL dinner and presentations at the ASCO 2025 conference, which strengthened their confidence in the company’s prospects.

The analysts highlighted positive outcomes from a Phase 2 trial involving the combination of zani and chemotherapy for GEA. The trial demonstrated a confirmed objective response rate (cORR) of 76.2% in all patients and 83.8% in centrally confirmed HER2+ GEA patients. Additionally, the trial reported a median overall survival (mOS) of 36.5 months. The company maintains impressive gross profit margins of 92.15%, reflecting strong operational efficiency.

Feedback from a key opinion leader, Dr. Geoff Buckle (NYSE:BKE), an Assistant Professor and GI Oncologist at UCSF, further supported the positive outlook on the trial results. Dr. Buckle considered the four-year follow-up data as a favorable development for zani.

UBS analysts also discussed the data read-out timeline with Jazz Pharmaceuticals’ partner, ZYME. Management expressed confidence that the data could be available by the third quarter of 2025, adding to the optimism surrounding the study’s outcomes.

The reaffirmation of the Buy rating and the positive trial data have bolstered confidence in Jazz Pharmaceuticals’ future prospects, according to UBS analysts. With a P/E ratio of 13.87 and strong financial health metrics, InvestingPro subscribers have access to 10+ additional exclusive insights about JAZZ’s valuation and growth potential.

In other recent news, Jazz Pharmaceuticals reported first-quarter earnings that fell significantly short of analyst expectations. The company posted adjusted earnings per share of $1.68, missing the consensus estimate of $4.81, and reported revenue of $897.8 million, below the anticipated $983.9 million. The earnings miss was primarily due to a $172 million expense related to Xyrem antitrust litigation settlements. Consequently, Jazz Pharmaceuticals dramatically lowered its full-year profit outlook, reducing its adjusted EPS guidance to a range of $4.00 to $5.60, down from the previous outlook of $22.50 to $24.00.

In other developments, Jazz Pharmaceuticals announced positive outcomes from its Phase 3 IMforte study, indicating that the combination of Zepzelca and atezolizumab improved survival rates in patients with extensive-stage small cell lung cancer. The company also shared promising Phase 2 trial results for Ziihera, showing a median overall survival of 36.5 months in patients with advanced gastroesophageal adenocarcinoma. Jazz Pharmaceuticals plans to discuss these findings with the FDA to expedite market introduction. Additionally, the company completed its acquisition of Chimerix (NASDAQ:CMRX), adding the late-stage pipeline candidate dordaviprone for a rare brain tumor.

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