Morgan Stanley analyst wants to move to the sidelines on Jazz Pharmaceuticals PLC (NASDAQ:JAZZ) as the stock has gained around 34 percent year-to-date and approached his price target of $183.
The Analyst
Morgan Stanley's David Risinger downgraded the stock from Overweight to Equal-Weight.
The Thesis
The strong year-to-date performance was driven by solid Xyrem growth, rising enthusiasm for the pipeline and anticipation of M&A, the analyst said in a note. He didn't make any changes in his financial model and still expects 2018 results in line with the consensus. He projects 2018 revenues of $1.9B and non-GAAP EPS of $13.12. Risinger sees 2019 results slightly above the consensus as he projects the revenue of $2.2B and EPS of $15.45, while the market expects revenue of $2.1B and EPS of $15.17.
The analyst expects FDA approval of JZP-110 in December, which should add $60 million of revenue in 2019 for the company. He sees peak sales potential for the new drug at more than 500 million.
Price Action
Jazz Pharmaceuticals fell about 1 percent Wednesday to $179.37.
Related Links:
Benzinga's Top Upgrades, Downgrades For July 11, 2018
Benzinga's Biotech Pulse: Pfizer To Defer Price Hikes, Idera-BioCryst Merger Falls Through
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
