Raymond James resumes coverage on Jazz Pharmaceuticals

What happened: On May 7, 2026, Morgan Stanley raised its price target on Jazz Pharmaceuticals (JAZZ) to $245, maintaining an Overweight rating. This follows Raymond James resuming coverage on April 10 with an Outperform rating and a $227 price target. Jazz Pharmaceuticals, a biotech company, acquired GW Pharmaceuticals in 2021, adding Epidiolex to its portfolio. On May 9, President Trump demanded the DOJ reclassify cannabis as a Schedule III drug, potentially benefiting JAZZ.

Market impact: The bullish sentiment from Morgan Stanley and Raymond James drove JAZZ's stock price higher. The potential reclassification of cannabis could boost demand for Epidiolex, benefiting JAZZ's portfolio. This narrative impacts biotech and cannabis-related stocks, with JAZZ being a key player.

What to watch next: Jazz Pharmaceuticals' Q2 2026 earnings, scheduled for August 2, will provide insights into Epidiolex's performance. The DOJ's response to Trump's demand for cannabis reclassification, expected by Q3 2026, could significantly impact JAZZ's stock. Additionally, any regulatory updates on cannabis could influence JAZZ's trajectory.