Jazz Pharmaceuticals price target lowered to $163 from $166 at Piper Sandler

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Fri, Nov 22, 2024, 4:36 AM 1 min read

Piper Sandler lowered the firm’s price target on Jazz Pharmaceuticals (JAZZ) to $163 from $166 and keeps an Overweight rating on the shares. The firm notes Jazz shares are down about 30% since the closing of the GW acquisition in May 2021, even with Epidiolex-associated diversification and the success of Xywav. Though Piper is bullish on the transformative potential of the OX2R agonists in sleep/wake, it still envisions a sizable role for oxybate products, particularly in narcolepsy type 2 and idiopathic hypersomnia, where orexin deficiency is not core to underlying disease pathophysiology. Put differently, with Jazz at an EV/2025 EBITDA of 5-times, the shares are trading as if there is a major loss of exclusivity on the horizon. However, “that is not where we are at,” the firm argues.