Analyst Jason Gerberry from Bank of America Securities maintained a Buy rating on Jazz Pharmaceuticals and keeping the price target at $230.00.
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Jason Gerberry has given his Buy rating due to a combination of factors that positively impact Jazz Pharmaceuticals’ financial outlook. The recent settlement with Avadel over intellectual property litigation is a significant factor, as it resolves ongoing legal disputes and removes a potential overhang on Jazz’s stock. This agreement allows Jazz to retain a royalty on Lumryz sales, which is expected to contribute positively to future revenue streams.
Additionally, the settlement includes a perpetual royalty-free covenant not to sue from Avadel, safeguarding Jazz’s sodium oxybate franchise from future patent challenges. This strategic move not only mitigates legal risks but also secures a steady income from royalties. Furthermore, the acquisition of Avadel by Alkermes suggests a stable market environment for oxybates, reinforcing the long-term viability of Jazz’s product offerings. These elements collectively underpin Gerberry’s confidence in Jazz’s growth prospects, justifying the Buy rating.
In another report released on October 20, Morgan Stanley also maintained a Buy rating on the stock with a $180.00 price target.
JAZZ’s price has also changed moderately for the past six months – from $103.380 to $138.520, which is a 33.99% increase.