Piper Jaffray Overweight on Jazz Pharmaceuticals

Piper Jaffray is out with a research report on Jazz Pharmaceuticals JAZZ and it has an Overweight rating and a $51 price target. In a note to clients, Piper Jaffray writes, "We recently spent time with Jazz senior management in meetings with investors. Management provided more color on its M&A strategy following the expected closing of the Azur merger in 1Q12. Importantly, we believe any additional transaction will not involve the company using its stock as currency, but rather its significant (and growing) cash position ($250M in net cash upon closing). We continue to believe pro forma diluted EPS by 2013 could meet or even exceed $5.00, and with a new tax-efficient structure and the formidable cash position, JAZZ will have ample ability to execute on accretive M&A transactions down the road. With sustainable annual operating cash flows of at least $200M on an enterprise value of $1.7B (reflecting the pro forma cash balance), we believe JAZZ shares are attractive. We reiterate our Overweight rating and $51 price target." Shares of JAZZ closed at $41.66 on Friday.