Deutsche Bank raised its price target on Jazz Pharmaceuticals to $300 from $287, maintaining a buy rating after the FDA granted full approval for Ziihera (zanidatamab) in first-line HER2-positive gastroesophageal adenocarcinoma.
The upgrade follows the drug's approval for both triplet and doublet regimens, covering all HER2-positive patients regardless of PD-L1 status. Analyst David Hoang cited the approval as a catalyst for the upward revision, noting the potential for peak sales of Ziihera to reach between $3 billion and $5 billion, up from prior estimates exceeding $2 billion.
Jazz Pharmaceuticals reported quarterly revenue of $1.21 billion, exceeding the consensus estimate of $1.11 billion. Earnings per share came in at $5.71, missing expectations due to convertible debt dilution and ongoing research and development expenses. The company's shares were trading at $260.23 at the time of the report, reflecting a 108% increase over the past year.
InvestingPro's fair value estimate for Jazz Pharmaceuticals stands at $294.58, suggesting the stock remains undervalued. Other brokerages have also adjusted their targets: Stifel raised its price target to $275, Truist Securities to $264, and TD Cowen to $300.
The FDA's approval was granted on a Sunday, accelerating the timeline for Ziihera's commercialization. High-level data from the Phase 3 HERIZON-GEA-01 study was released in November 2025, and the National Comprehensive Cancer Network (NCCN) is scheduled to review guidelines at its annual meeting in August, with Category 1 recommendations for Ziihera's regimens expected soon.
