Morgan Stanley Maintains Overweight on Jazz Pharmaceuticals, PT Down to $165

Morgan Stanley Maintains Overweight on Jazz Pharmaceuticals, PT Down to $165

Morgan Stanley analyst Sean Laaman has maintained an Overweight rating on Jazz Pharmaceuticals (JAZZ), adjusting the price target to $165.00 from the previous $166.00 [2]. This move reflects Laaman’s positive outlook for the company, driven by several key factors.

Despite a 10% shortfall in net product sales for the first quarter, Laaman expects a recovery and growth in the second quarter, with stronger performance anticipated in the latter half of the year. This optimism is supported by an additional shipping week in the Oncology pipeline, improved performance for Rylaze due to updates in pediatric oncology protocols, and better seasonality in sleep revenues.

Significant clinical catalysts are expected in the second half of the year, including the HERIZON-GEA-01 data and the dordaviprone PDUFA. The upcoming leadership transition, with Renee Gala taking over as CEO, also adds to the potential for positive change. Laaman’s projections for Oncology product revenues exceed Street estimates, reinforcing the Overweight rating.

Jazz Pharmaceuticals reported strong commercial performance in Q1 2025, with total revenues of $898 million, driven by growth in its neuroscience portfolio, particularly Zywav and Epidiolex [1]. The company made significant progress in its R&D pipeline, including the submission of a supplemental new drug application for Zepzelca and a positive CHMP opinion for Zanidatamab in Europe. The acquisition of Chimerix has strengthened Jazz Pharmaceuticals’ presence in rare oncology, adding Dordaviprone to its pipeline [1].

Analysts from Deutsche Bank and Wells Fargo have initiated coverage on Jazz Pharmaceuticals with Buy ratings and price targets of $152.00 and $170.00, respectively. The average analyst price target for JAZZ is $179.45, implying a 55.7% upside from current levels [1]. Abbott Laboratories (ABT) also received positive analyst ratings, with a Strong Buy consensus and an average price target of $146.75 [1].

References:
[1] The Globe and Mail. "Analysts Top Healthcare Picks: Jazz Pharmaceuticals (JAZZ), Abbott Laboratories (ABT)." https://www.theglobeandmail.com/investing/markets/stocks/ABT/pressreleases/33511207/analysts-top-healthcare-picks-jazz-pharmaceuticals-jazz-abbott-laboratories-abt/
[2] TipRanks. "Positive Outlook for Jazz Pharmaceuticals Amidst Anticipated Recovery and Growth." https://www.tipranks.com/news/ratings/positive-outlook-for-jazz-pharmaceuticals-amidst-anticipated-recovery-and-growth-ratings