'Street Underestimates Jazz Pharma's Cash-Flow' Says This Analyst

  • HC Wainwright tweaked the price target on Jazz Pharmaceuticals plc JAZZ to $204 with a reiterated Buy rating on slightly increased forward EPS estimates.
  • Jazz reported a thorough 2Q22 beat, with broad product outperformance vs. consensus across neuro and oncology, plus gross margin upside and light OPEX, HC Wainwright notes.
  • As per the analyst, this looked to be Jazz’s second-biggest operating cash flow quarter ever, pushing net leverage down to 3.2x, six months ahead of the targeted <3.5x by year-end. 
  • Xywav is adding idiopathic hypersomnia patients slightly faster than modeled, and Rylaze adoption has ramped much faster than expected, the analyst writes.
  • HC Wainwright believes the Street underestimates Jazz’s cash-flow generation through limited Xyrem AG competitive entry.
  • Further, Jazz’s cash flow positions the balance sheet to move on significant accretive and diversifying M&A. 
  • Price Action: JAZZ shares are up 0.89% at $152.51 during the market session on the last check Friday.
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