Exelixis stock holds Market Outperform rating, $41 target

On Monday, JMP Securities maintained a positive stance on Exelixis (NASDAQ:EXEL) stock, reiterating a Market Outperform rating with a $41.00 price target, significantly above the current trading price of $32.38. According to InvestingPro data, analysts' targets range from $23 to $42, with the stock showing a 10.55% decline over the past week. The firm's analyst highlighted the potential of Exelixis in the colorectal cancer (CRC) market, particularly following recent updates on the company's zanza drug. The analyst noted that despite the recent weakness in Exelixis shares, the data presented over the weekend is supportive of the drug's use in CRC treatments.

The firm's confidence is partly based on discussions with Exelixis management regarding the STELLAR-303 study, which is expected to produce results in the second half of 2025. This study focuses on non-liver metastases (NLM) in metastatic colorectal cancer (mCRC) patients, a market that JMP Securities estimates could be worth approximately $1 billion at its peak. The company's strong financial position, with an impressive InvestingPro Financial Health Score of 3.5 (GREAT) and revenue growth of 17.3% in the last twelve months, positions it well to pursue this opportunity.

The analyst believes that the probability of success for the STELLAR-303 study is favorable, which has contributed to maintaining the stock's Market Outperform rating and the price target based on discounted cash flow (DCF) analysis. The positive outlook reflects the firm's expectations of Exelixis's growth potential in the CRC market segment.

Exelixis's commitment to advancing CRC treatments is evident in its ongoing clinical research and dialogue with industry experts. The company's focus on addressing NLM mCRC patients represents a significant opportunity within the broader oncology field.

Investors and market watchers will be keeping a close eye on Exelixis as it continues to progress with its clinical trials and seeks to capitalize on the opportunities within the CRC space. The maintained price target and rating by JMP Securities underscore a belief in the company's strategy and potential for future success. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of this and 1,400+ other US stocks.

In other recent news, Exelixis has experienced substantial activity in earnings, revenue, and analyst evaluations. The biopharmaceutical company reported preliminary fourth-quarter sales from its Cabo franchise at approximately $509 million, contributing to full-year product sales around $1.805 billion, marking an 11% year-over-year growth. For the fiscal year 2025, Exelixis has provided net product sales guidance in the range of $1.95 to $2.05 billion.

Morgan Stanley (NYSE:MS) upgraded Exelixis's stock rating from Equalweight to Overweight, while Oppenheimer downgraded the stock from Outperform to Perform. JMP Securities maintained its Market Outperform rating and a price target of $41.00 on Exelixis, highlighting the promising efficacy of zanzalintinib, a key asset for the company's future growth.

Exelixis is currently conducting six pivotal trials with zanzalintinib, targeting various cancers. Outcomes from the first pivotal trials are anticipated in the second half of 2025 and into 2026. These are recent developments that have been shaping the financial landscape for Exelixis.

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