On Monday, Truist Securities updated its outlook on Jazz Pharmaceuticals (NASDAQ:JAZZ), increasing the price target to $220 from the previous $200 while maintaining a Buy rating on the stock.
According to InvestingPro data, Jazz currently trades at $123.04, with analysts setting targets ranging from $128 to $230, suggesting significant upside potential.
The firm's analyst cited the growth potential of Jazz's Ziihera (zanidatamab) franchise, particularly noting the drug's recent approval and launch for second-line biliary tract cancer (2L BTC).
The analyst highlighted the derisked indications for Ziihera as a key factor for the optimistic forecast. With the drug now available for 2L BTC, there are expectations for further approvals, including a potential first-line gastroesophageal adenocarcinoma (1L GEA) approval in 2026 and a possible breast cancer (BC) entry in 2028.
In the report, the analyst stated, "We see underlying growth potential in JAZZ's Ziihera franchise driven by derisked indications. With Ziihera now approved and launched for 2L BTC, we also expect potential 1L GEA approval in 2026 and possible BC entry in 2028."
The positive outlook was supported by model adjustments, which led to the increase in the price target. The analyst concluded, "Our model adjustments increased our PT to $220 (from $200). Reiterate BUY." This adjustment reflects a more bullish stance on the company's prospects due to the drug's market performance and expected regulatory milestones.
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In other recent news, Jazz Pharmaceuticals has experienced numerous positive developments. The company recently received an upgrade from Morgan Stanley (NYSE:MS), reflecting confidence in the growth potential of Ziihera, a treatment for Biliary Tract Cancer. This upgrade followed the successful launch of Ziihera and the anticipation of Phase 3 data in Gastric Esophageal Adenocarcinoma in 2025.
Piper Sandler reaffirmed an Overweight rating on Jazz Pharmaceuticals' shares, following the accelerated FDA approval of Ziihera. This treatment will be introduced to the market at a price of $35,500 for a 28-day treatment cycle, targeting a specific U.S. patient population.
In a strategic financial move, Jazz Pharmaceuticals expanded its credit facility from $500 million to $885 million and extended the maturity date, enhancing its financial flexibility. This development comes as the company saw an increase in its patient base for its medication, Xywav, leading to a price target increase by Baird.
Several analyst firms, including Jefferies and TD (TSX:TD) Cowen, adjusted their stock price targets for Jazz Pharmaceuticals, based on the company's attractive valuation and projected five-year revenue and earnings per share growth rates. They maintain a positive outlook on Jazz Pharmaceuticals' stock, taking into account the recent FDA approval and the potential for future growth in the oncology market.
These recent developments reflect the ongoing strategic initiatives and potential growth areas for Jazz Pharmaceuticals.
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