Jazz Pharmaceuticals (JAZZ) received a boost from positive topline data from a late-stage study of Ziihera in gastro-esophageal adenocarcinoma, which uplifts the company's oncology revenue outlook but is largely priced in, UBS Securities said in a note Monday.

The study showed statistically significant and clinically meaningful improvements in progression-free and overall survival for Ziihera in combination with chemotherapy, with or without the PD-1 inhibitor tislelizumab. Jazz plans to submit a supplemental Biologics License Application for this indication in the US in the first half of 2026.

UBS raised its Ziihera peak sales assumption to about $1.5 billion from its prior guidance of $730 million.

Despite the oncology upside, the investment firm flagged headwinds in the sleep franchise, citing intensifying competition and pressure from generic drugs.

UBS now models a 2026 to 2029 EPS compound annual growth rate of about 8% and said the stock's current valuation already reflects much of the Ziihera outcome.

The firm downgraded Jazz Pharmaceuticals to neutral from buy and raised its price target to $188 from $163.

Shares of the company were up 2.4% in recent trading.

Price: 181.16, Change: +4.23, Percent Change: +2.39