Jazz Pharmaceuticals, Inc. (NASDAQ:JAZZ)

Several drugs for mental illness and non-opiod pain management. Sold under performing subsidiary in June 2012. Fwd P/E 9.26. Upgrade with Target price 87.10.

Lots of growth at a cheap valuation

hold it

JAZZ has had a great year, up approximately 41.44%, the good news is there is still room for growth.

- Based on 10 analysts offering Price Targets the Median is $70, which is 25% higher than its Last Price $56, a High Target of $81 (+44.64%), and a Low Target of $60 still represents a 7.14% premium.
- In the current month, 7 analysts recommend Strong Buy and 5 Buy
- JAZZ is valued at a discount with a PEG value of 0.85, one of the lowest in the Biotechnology & Drugs industry.
- The company converts a larger percentage of revenues to profits than most in the industry, with an Operating Margin of 34.58%
- Consistently one of the most efficient companies in the Biotechnology & Drugs industry, with a Return on Assets of 13.69% (Industry Avg 4.78%), Revenue Per Employee $1,127,174 (Industry Avg $729,054), and Return on Equity 25.78% (Industry Avg 11.46%)
- Debt to Total Capital Ratio in line with Industry Avg

Recommendation: I am long JAZZ with a Price Target of $72.00

With hot biotech sector and decent value.

Jazz Pharmaceuticals is a great business with a great balance sheet. If a company can pay off all its debt (Jazz doesn't have any debt) and its total liability with just the cash it has on hand i don't know about you but to me that company has great balance sheet.

Good valuation and growth

The market doesn't seem to be entirely comfortable with Jazz's bid to become a major pharma player through debt-funded acquisitions. Two years of steep upward momentum seems to have leveled off and the stock is well off the recent high of 52. Perhaps it hasn't completely forgotten that in 2009 Jazz almost winked out of existence with a 55 cent share price. Perhaps this company hasn't acquired all the tools in three short years to become a multinational pharmaceutical corporation with 500M in annual revenues.

I'm skeptical as well. But I have to give the company credit for growing revenues of narcolepsy drug Xyrem far beyond the wildest speculation of the most rabidly optimistic analysts. Through cash and confidence, Xyrem has been the engine of Jazz's surge into the biotech elite. I'm weak when it comes to assessing the strength of acquisitions and future prospects of marketed drugs, but I'll give Jazz the benefit of the doubt on a downswing.

DRUGS

Undervalued with respect to growth rate.

3 orpheans drugs can boost their income.This pharmcateutique can be a medium size pharma in thenext 2-4 years with market value arround $10b

breaking out of cup and handle base

"The FDA said it reviewed Jazz Pharmaceuticals' response ....... the response lacks sufficient corrective actions. The FDA told Jazz its response fails to develop adequate written procedures for the surveillance, receipt, evaluation, and reporting of postmarketing adverse drug experiences to the agency. "You should take prompt action to correct the violations cited in this letter. Failure to promptly correct these violations may result in legal action without further notice including, without limitation, injunction. FDA may re-inspect to verify corrective actions have been completed," the FDA said in the letter. (JAZZ)"

Answer yourself this question: where is the answer from Jazz to the FDA? how come it is not on their website or being published in the wire?? the letter was sent by the FDA on 10/11/11, and it's been more than 15 days!! Is management staying quiet until they unload their shares, then leave the retail investor in the hole?!

How about trading at 10.5 times 2012 estimates. Nice....

value screen

revenues are growing 60% per year but PE is only 31, implying <10% growth rate.

Next quarter expect:
REV - $66M
NET - $26M
EPS - $0.63
R^2 = 0.95
Fair value = $100+

will be spitting cash all year with nowhere to put it. Look for a special dividend or acquisition late in the year.

Relative Pullback Likely Complete, Rise to Resume

Increasing sales of existing drugs Xyrem and Luvox with additional products in late stage pipline that should power growth through 2012.