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Wednesday, JMP Securities maintained a Market Outperform rating and a $41.00 price target for Exelixis (NASDAQ:EXEL) shares, aligning with the broader analyst consensus as five analysts have recently revised their earnings estimates upward. The firm’s analyst highlighted Exelixis’ fourth quarter 2024 revenue, which met market expectations, and provided insights into the company’s developmental focus on zanzalintinib. This investigational drug is considered by the company as a potential $5 billion opportunity. According to InvestingPro analysis, Exelixis appears undervalued at its current market cap of $9.37 billion, with analyst targets ranging from $23 to $43.
The analyst’s update followed Exelixis’ preannouncement of its 4Q24 revenue, which aligned with analysts’ forecasts. The company has demonstrated strong financial performance, with revenue growing 17.31% and maintaining an impressive 96.25% gross profit margin. The emphasis was placed on the prospects of zanzalintinib, particularly in the context of metastatic colorectal cancer (mCRC). Recent early clinical results for zanzalintinib in mCRC were seen as positive indicators for the drug’s future potential in this indication. For deeper insights into Exelixis’ financial health and growth prospects, InvestingPro subscribers can access the comprehensive Pro Research Report, which covers detailed analysis of the company’s performance metrics and future potential.
Exelixis management has been keen on differentiating zanzalintinib from cabozantinib (cabo), another of the company’s products. The goal for zanzalintinib is not to demonstrate superiority over cabozantinib but to improve upon cabozantinib’s performance gaps in certain clinical areas, especially in terms of tolerability for patients.
The analyst from JMP Securities expressed a positive outlook for zanzalintinib’s development, noting that the focus should be on its unique attributes and potential to address specific unmet medical needs rather than direct comparisons with existing treatments.
Exelixis is committed to advancing the clinical development of zanzalintinib, with the anticipation that it could offer a significant therapeutic option for patients with mCRC and potentially other indications. The maintained price target suggests a steady confidence in the company’s strategy and the projected value of its pipeline.
In other recent news, Metsera, an emerging player in the biotechnology sector, experienced a substantial increase in its stock value on its first trading day, following a successful initial public offering (IPO). This was part of a broader trend in the biotech sector, which saw a $280 million increase in market capitalization, as reported by JMP Securities. The industry also witnessed significant merger and acquisition activities, with the total value of deals reaching approximately $18 billion.
Meanwhile, Exelixis, a biopharmaceutical company, has been the subject of several recent analyst notes. Stifel analysts maintained a hold rating with a $30.00 price target on Exelixis stock, while Truist Securities raised its price target to $43.00 due to encouraging data from a Phase 1 study. H.C. Wainwright reaffirmed a buy rating and a $40.00 price target, and JMP Securities maintained a market outperform rating with a $41.00 price target.
These recent developments highlight a cautiously optimistic outlook for both Metsera and Exelixis. The companies continue to make strides in their respective markets, with Metsera making a strong debut in the biotech sector and Exelixis receiving positive analyst feedback for its ongoing clinical trials.
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