Raising Jazz’s FVE to $187 on Improved Outlook Thanks to Strong Drug Launches; Shares Undervalued

Jazz increased its 2022 guidance based on the strong uptake of Xywav (for narcolepsy and idiopathic hypersomnia) and Rylaze (for acute lymphoblastic leukemia), which have generated greater than expected prescriber and patient adoption. As a result, we’ve increased our fair value estimate to $187 per share from $172. We believe shares are currently trading at an attractive entry point in 4-star territory. We maintain our no-moat and negative trend ratings.