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Jazz Pharmaceuticals (JAZZ): Valuation Check After Positive Ziihera and Epidiolex Clinical Updates Boost Investor Interest

Simply Wall St · 1d ago

Jazz Pharmaceuticals (JAZZ) has slipped onto more investors radar after a run of encouraging clinical updates, from fresh Epidiolex seizure data to promising Ziihera results in HER2 positive gastroesophageal cancer and upcoming conference showcases.

See our latest analysis for Jazz Pharmaceuticals.

Those updates seem to be resonating with investors, with the share price now at $167.50 and a strong 30 day share price return of 18.74 percent feeding into a 36.13 percent 1 year total shareholder return. This suggests momentum has picked up meaningfully.

If Jazz’s recent run has you rethinking your healthcare exposure, this could be a good moment to explore other potential leaders using healthcare stocks.

Yet despite this rally, Jazz still trades nearly 30 percent below consensus targets and carries a solid value score. This raises a key question: Is this a timely entry point, or is future growth already baked in?

Most Popular Narrative Narrative: 19.7% Undervalued

With the most followed fair value estimate at $208.50 versus Jazz Pharmaceuticals last close of $167.50, the narrative points to meaningful upside driven by oncology and sleep assets.

Bullish analysts see Ziihera as a potential new standard of care in first line HER2 positive GEA, with strong progression free and overall survival signals supporting sustained pricing and high penetration, which underpins higher long term revenue and cash flow assumptions.

The drug is increasingly framed as a pipeline in a drug, with HER2 positive indications beyond GEA viewed as a meaningful source of upside optionality that is not yet fully reflected in valuation.

Read the complete narrative.

Curious how a single oncology asset, a maturing sleep franchise, and a sharp profit margin pivot combine to justify that gap to fair value? The narrative sets out a precise growth runway, a step change in profitability, and the future earnings multiple it expects the market to eventually pay. Want to see which assumptions truly do the heavy lifting in that $208.50 target?

Result: Fair Value of $208.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upside depends on flawless execution, with patent cliffs in the oxybate franchise and intense HER2 oncology competition both capable of quickly denting the growth story.

Find out about the key risks to this Jazz Pharmaceuticals narrative.

Build Your Own Jazz Pharmaceuticals Narrative

If you are unconvinced by this storyline or prefer to lean on your own analysis, you can build a personalized view in minutes: Do it your way.

A great starting point for your Jazz Pharmaceuticals research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.