Jazz Pharmaceuticals (JAZZ) has recently announced the acquisition of Chimerix for $935 million, enhancing its oncology portfolio. This strategic move is expected to positively impact the stock price as it strengthens JAZZ's position in the market. However, insider sentiment is negative, with 58 insiders selling shares, indicating potential concerns.
The stock is approaching a critical support level, which could act as a floor or lead to a breakdown.
Mixed ratings with Buy from Stifel Nicolaus and Needham, but a Hold from Cantor Fitzgerald.
Given the acquisition news and technical indicators, JAZZ is expected to trade between $136 and $140 next week.
Buy at the lower end of the range, considering the strategic acquisition and potential bounce from support levels. However, monitor insider activity and market sentiment closely.
The price of JAZZ is predicted to go up 2.05%, based on the high correlation periods with MSA. The similarity of these two price pattern on the periods is 98.17%.
JAZZ
MSA
The GW acquisition allows Jazz to reach patient populations with rare and severe forms of epilepsy with approved indications for Epidiolex as young as 1 year of age.
Jazz's extensive network of sleep doctors should give the company a competitive edge when marketing its new sleep therapies.
Xyrem's historically strong cash generation has allowed the company to make recent acquisitions to help diversify its portfolio.
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