The Dublin-based biopharmaceutical company is focused on developing and commercializing products that address unmet medical needs.
"While specialty pharma has been out of favor, we believe JAZZ offers a unique business model by targeting a number of rare diseases (narcolepsy, oncology, VOD) that should result in greater sustainability with higher barriers to entry, as well as greater profitability with the highest margins in our coverage," the firm wrote in an analyst note received earlier today.
The biggest overhang on the stock has been the uncertainty about the potential for generic Xyrem, which treats sleeping disorder narcolepsy, BMO said.
The firm sees Jazz Pharma as a "multiple expansion story" that would be driven by solid execution on the legal, commercial and regulatory fronts.
Additionally, the company's pipeline is starting to "bear some fruit" and could provide meaningful catalysts near-to-medium term, BMO noted.
Shares of Jazz Pharma closed up 2.53% to $140.54 on Wednesday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and expanding profit margins.
The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: JAZZ