Piper Jaffray Cuts Price Target on Jazz Pharmaceuticals (JAZZ) to $178 Following Mixed 2Q

August 10, 2016 8:27 AM EDT
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Price: $117.30 --0%

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Piper Jaffray maintained an Overweight rating on Jazz Pharmaceuticals (NASDAQ: JAZZ), and cut the price target to $178.00 (from $188.00), following the company's 2Q earnings report. JAZZ reported a non-GAAP EPS of $2.63 compared to Street estimates of $2.78. Revenues of $381M, compared to Street estimates of $376M.

Analyst David Amsellem commented, "Jazz reported 2Q16 non-GAAP EPS of $2.63 on revenue of $381M, compared to Street estimates of $2.78 and $376M, respectively. EPS did reflect a change to how Jazz records its non-GAAP income tax provision (adjusted EPS was $2.82 under the prior methodology). Notably, JAZZ adjusted its revenue guidance range to $1.485B-$1.53B, down from $1.49B-$1.55B, mainly due to continued supply chain issues associated with Erwinaze. Those challenges aside, our views regarding the longer-term growth trajectory of earnings/cash flows have not changed, and we continue to believe that visibility on a long-term (2017-2022) EPS CAGR at least in the mid teens is realistic. This translates into an attractive risk/reward profile in the context of a PF 2017 P/E and EV/EBITDA of 14x and 11x, respectively. We reiterate our Overweight rating and are lowering our PT to $178 from $188 (see below for more details)."

For an analyst ratings summary and ratings history on Jazz Pharmaceuticals click here. For more ratings news on Jazz Pharmaceuticals click here.

Shares of Jazz Pharmaceuticals closed at $150.01 yesterday.

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