Citizens JMP reiterates Exelixis stock with $41 target

Published 17/04/2025, 10:22
Citizens JMP reiterates Exelixis stock with $41 target

On Thursday, Citizens JMP analysts maintained a Market Outperform rating on Exelixis stock (NASDAQ:EXEL), with a price target of $41.00. According to InvestingPro analysis, the company demonstrates exceptional financial health with a perfect Piotroski Score of 9 and strong market performance, having delivered a 58% return over the past year. The firm’s analyst, Silvan Tuerkcan, projected a top-line beat for Exelixis, attributing this to a robust prescription model. Tuerkcan expects a gross-to-net (GtN) of 32.9% for the first quarter of 2025.

Exelixis saw a modest increase in its Wholesale Acquisition Cost (WAC) to $26.3k, a 2.8% year-over-year growth, influenced by the Inflation Reduction Act’s constraints on WAC growth. The company’s strong financial position is evident in its balance sheet, with more cash than debt and a healthy current ratio of 3.63x. Despite this, a quarter-over-quarter net price decrease of 6% is anticipated due to higher GtN in the first quarter compared to the fourth quarter of 2024. Nonetheless, prescription growth of 4% quarter-over-quarter suggests strong demand.

The analyst expects Exelixis to report $473.5 million in cabozantinib sales, marking a 26% increase year-over-year but an 8% decline from the previous quarter. Net product sales are also expected to reach $476 million, aligning with the same growth and decline percentages. These figures slightly surpass the consensus estimate of $456 million.

Exelixis previously updated its full-year guidance during a conference in January 2025 and reaffirmed it in February 2025. The company raised its expected net revenues for 2025 to a range of $1.950 billion to $2.05 billion. This upward revision reflects a positive outlook for the company’s financial performance in the coming year.

In other recent news, Exelixis Inc . has received FDA approval for its drug cabozantinib, marketed as Cabometyx, for treating certain neuroendocrine tumors (NETs), marking its sixth FDA approval in the United States. This decision followed the phase 3 CABINET trial, which showed significant improvements in median progression-free survival for both pancreatic and extra-pancreatic NETs. Analysts from H.C. Wainwright and Citi have maintained a Buy rating on Exelixis, with price targets of $40 and $45, respectively, reflecting optimism about the drug’s market potential. Stifel analysts, however, have reiterated a Hold rating with a $36 price target, factoring in their expectations for future sales growth. Guggenheim has also maintained a Buy rating, emphasizing the company’s strategic positioning in the neuroendocrine tumor market.

Additionally, Exelixis management has expressed confidence in ongoing studies like STELLAR-303 and STELLAR-304, which could further impact treatment practices in cancer care. The company’s focus on business development opportunities in solid tumor oncology remains strong, with no anticipated impact from tariffs on their operations. Analysts, including those from Leerink, are closely watching for pivotal trial readouts in the second half of 2025, which could further influence Exelixis’s market performance. As Exelixis continues to navigate its regulatory and market landscape, these developments are crucial for investors to monitor.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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