Jazz Reports Strong Q4, Lifting FVE to $172 on Improved Near-Term Outlook; Shares Undervalued

Jazz reported strong fourth-quarter results highlighted by revenue of nearly $897 million. The company achieved 2021 sales over $3 billion thanks to additional revenue from its GW Pharmaceuticals acquisition, which closed in May 2021. Management provided stronger-than-expected 2022 guidance due to anticipated robust performance from recently approved drugs Rylaze (for leukemia), Epidiolex (for childhood epilepsy), and Xywav (for excessive daytime sleepiness). We’ve increased our fair value estimate to $172 per share from $140 due to an improved near-term outlook. We believe shares are currently trading at an attractive entry point, about 11% below our fair value estimate. We forecast about 16% revenue growth in 2022 with sales reaching about $3.6 billion.