NEW YORK (TheStreet) -- Jazz Pharmaceuticals
(JAZZ - Get Report) shares are up 0.92% to $153.92 on Tuesday after having coverage initiated with an "overweight" rating and $190 price target by analysts at JPMorgan
The firm believes that the pharmaceutical company is well positioned for organic growth and could be an acquisition candidate.
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TheStreet Ratings team rates JAZZ PHARMACEUTICALS PLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate JAZZ PHARMACEUTICALS PLC (JAZZ) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 4.5%. Since the same quarter one year prior, revenues rose by 39.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Pharmaceuticals industry average. The net income increased by 3.5% when compared to the same quarter one year prior, going from $42.19 million to $43.66 million.
- Net operating cash flow has significantly increased by 759.31% to $74.92 million when compared to the same quarter last year. In addition, JAZZ PHARMACEUTICALS PLC has also vastly surpassed the industry average cash flow growth rate of -3.89%.
- The gross profit margin for JAZZ PHARMACEUTICALS PLC is currently very high, coming in at 90.94%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 14.99% trails the industry average.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 78.23% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: JAZZ Ratings Report