Gold prices edge higher on raised Fed rate cut hopes
On Friday, UBS analyst Ashwani Verma upgraded the rating for Jazz Pharmaceuticals on (NASDAQ:JAZZ) from Neutral to Buy, increasing the price target to $179.00, up from the previous target of $145.00. The upgrade reflects the firm’s increased confidence in the company’s base business and the potential of its Ziihera pipeline. According to InvestingPro data, the company maintains impressive gross profit margins of 92.4% and currently appears undervalued based on its Fair Value analysis.
Verma cited the strength of Jazz Pharmaceuticals’ base business and upcoming catalysts from the Ziihera pipeline as key reasons for the upgrade. The analyst anticipates that these factors will justify a 7.0x price-to-earnings (P/E) multiple for the stock, an increase from the previous target of approximately 6x, which is the stock’s current trading level. The company currently trades at a P/E ratio of 16.2x with a PEG ratio of 0.36, suggesting attractive valuation metrics relative to its growth potential. InvestingPro analysis reveals six analysts have recently revised their earnings expectations upward for the upcoming period.
The revised revenue and earnings per share compound annual growth rate (CAGR) projections for 2025 to 2028 are now set at 6% and 5%, respectively. These figures are slightly higher than the consensus estimates of 5% for revenue and 4% for earnings growth.
Verma highlighted the potential for Jazz Pharmaceuticals’ Ziihera to produce compelling data in a Phase 3 study for gastroesophageal adenocarcinoma, a type of stomach cancer, expected in the second half of 2025. Additionally, the durability of the company’s Sleep franchise is anticipated to be more robust through the latter half of 2025 and the first half of 2026, given competitive updates in the market.
The analyst also noted that Jazz Pharmaceuticals’ better-than-expected operating results and management’s renewed focus on shareholder-friendly capital deployment contribute to the positive outlook. The firm believes that the stock is poised to perform well over the next 12 months, particularly in a risk-off environment that favors value-oriented stocks. InvestingPro data supports this outlook, showing a "GREAT" overall financial health score of 3.44 out of 5, with particularly strong marks in profitability and price momentum. Subscribers can access 10+ additional ProTips and comprehensive financial metrics in the Pro Research Report, providing deeper insights into Jazz Pharmaceuticals’ investment potential.
In other recent news, Jazz Pharmaceuticals reported its Q4 2024 earnings, exceeding analyst expectations with an earnings per share of $6.60, compared to the forecasted $5.79, and achieving a record revenue of $1.1 billion for the quarter. The company projects 2025 revenue growth of 5%, with expectations to reach between $4.15 billion and $4.4 billion. Additionally, Jazz Pharmaceuticals plans to acquire Chimerix (NASDAQ:CMRX) for $935 million, a move strategically aligned with the anticipated approval of dordaviprone, a promising treatment for a rare form of brain cancer. Truist Securities increased its price target for Jazz Pharmaceuticals to $230, highlighting the promising pipeline, while Needham also raised its target to $210, citing positive developments including a settlement extending Epidiolex’s market exclusivity. Conversely, RBC Capital Markets slightly lowered its target to $178, acknowledging uncertainties in Jazz Pharmaceuticals’ pipeline and upcoming leadership changes. Despite these challenges, Jazz Pharmaceuticals continues to demonstrate strong performance across its commercial franchises, particularly in sleep and oncology.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.