UPDATE: Stifel Nicolaus Raises PT on Jazz Pharmaceuticals Following 2Q13 Revenue Report

In a report published Wednesday, Stifel Nicolaus analyst Annabel Samimy reiterated a Buy rating on Jazz Pharmaceuticals JAZZ, and raised the price target from $80.00 to $85.00.

In the report, Stifel Nicolaus noted, “2Q13 revenues were in-line ($208.3mn vs Consensus $208.7mn) with solid performance from Xyrem ($133.7mn vs $134.3mn) and Erwinaze ($44.9mn vs $41.4mn). Prialt ($4.7mn vs $7.2mn) was hit by 2Q13 transition to exclusive specialty pharmacy, while Psychiatry ($11.8mn) saw generic competition (Luvox CR, Fazaclo). Despite strong gross margins (89%), higher-than-expected Opex (34% vs 32% 1Q13) drove an EPS miss ($1.43 vs $1.52). Still, JAZZ raised 2013 guidance (Revs +$20-30mn to $860-880mn, EPS +$0.10 to $6.20-6.40) on better outlook for Xyrem, Erwinaze and gross margins, leveraged against increased Opex. Importantly, JAZZ's growth drivers remain intact via Xyrem volume/pricing growth, Erwinaze supply resolution, pipeline development and upcoming business development. Despite the outsized stock run, we still see JAZZ as a top growth story. Reiterate Buy and raise TP to $85 from $80.”

Jazz Pharmaceuticals closed on Tuesday at $77.99.