'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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