UPDATE: Cantor Fitzgerald Initiates Jazz Pharmaceuticals at Buy on Xyrem Outlook
Cantor Fitzgerald initiated coverage on Jazz Pharmaceuticals (NASDAQ: JAZZ) with a Buy rating and $86.00 price target.
Cantor Fitzgerald said, "We see Jazz as an attractive growth story that has been held back by what we view as unreasonable generic concerns over its key revenue driver, Xyrem (a drug used for the treatment of narcolepsy that represents 69% of revenue). Jazz is poised to deliver +39% Y/Y revenue growth in 2013, and we believe that double-digit top line growth is sustainable through 2016. On the bottom line, Jazz benefits from its Irish tax rate (cash tax is in the high teens) and significant operational leverage. Management has indicated that it plans to acquire additional on-market or late stage assets in 2013 after completing significant transactions in both 2011 and 2012, which could create major momentum for the stock."
Jazz Pharmaceuticals closed at $58.50 on Friday.
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