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Morgan Stanley Downgrades Jazz Pharmaceuticals As Stock Approaches Price Target

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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.

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Latest Ratings for JAZZ

DateFirmActionFromTo
Nov 2018B. Riley FBRMaintainsBuyBuy
Aug 2018BMO CapitalMaintainsOutperformOutperform
Aug 2018Stifel NicolausMaintainsBuyBuy

View More Analyst Ratings for JAZZ
View the Latest Analyst Ratings

Posted-In: David Risinger Morgan StanleyAnalyst Color Downgrades Analyst Ratings

 

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