Tariff Fears May Be Overblown: BofA Reaffirms Buy …
From Financial Modeling Prep: 2025-04-11 09:09:00
Bank of America Securities maintains a Buy rating on Jazz Pharmaceuticals (NASDAQ:JAZZ) with a $213 price target, despite the stock’s 30% decline since March. Concerns over potential U.S. tariffs on Irish-manufactured drugs, including top-seller Xywav, have led to the drop.
BofA believes the selloff overestimates tariff impact. Jazz has confirmed ability to mitigate disruptions with U.S. inventory and a domestic contract manufacturer for Xywav. Regulatory restrictions on increasing domestic output remain a concern, but BofA sees low risk given the drug’s niche market.
If tariffs rise, Jazz could shift to U.S. production using stockpiled inventory. This may raise tax burden but is viewed as manageable. BofA sees the recent weakness as an attractive entry point, with Jazz’s fundamentals and risk management supporting recovery.
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