Exelixis stock poised for Q2 beat on strong script growth, JMP says

Published 24/07/2025, 10:20
Exelixis stock poised for Q2 beat on strong script growth, JMP says

Investing.com - Exelixis (NASDAQ:EXEL), a biotechnology company with a "GREAT" financial health rating according to InvestingPro, is expected to report second-quarter results that exceed analyst expectations, according to JMP Securities, which maintained its Market Outperform rating and $50 price target on the stock. The company’s perfect Piotroski Score of 9 and impressive revenue growth of 24.5% over the last twelve months support this optimistic outlook.

JMP cited strong prescription growth of 7% quarter-over-quarter for Exelixis’s cancer drug cabozantinib as the primary driver for the anticipated earnings beat. This follows what the firm described as a strong first quarter that already delivered better-than-expected results and prompted upward revisions to consensus estimates. InvestingPro data shows five analysts have recently revised their earnings estimates upward for the upcoming period.

The research firm updated its model with second-quarter prescription data and projects cabozantinib U.S. sales to reach $536.8 million in the second quarter, representing 24% year-over-year growth and 5% sequential growth.

JMP’s sales projection stands approximately 1% above the current consensus estimate of $529.2 million for cabozantinib U.S. sales in the quarter.

The firm’s continued bullish stance comes as Exelixis prepares to report its first sales figures for cabozantinib in neuroendocrine tumors following FDA approval of this label expansion in April 2025.

In other recent news, Exelixis has reported significant developments that have caught the attention of analysts. The company announced positive top-line results from its STELLAR-303 phase 3 trial, where zanzalintinib, in combination with atezolizumab, demonstrated improved overall survival in patients with metastatic colorectal cancer. This trial success has led William Blair to maintain an outperform rating on Exelixis, highlighting the pivotal success of the zanzalintinib program. Furthermore, H.C. Wainwright raised its price target for Exelixis from $47 to $53, maintaining a Buy rating, following the promising trial outcomes.

Truist Securities also increased its price target for Exelixis to $56, citing positive feedback on the cancer drug Cabometyx in its neuroendocrine tumor launch. Meanwhile, Stifel maintained a Hold rating with a $38 price target, acknowledging the unexpected positive trial results. UBS kept a Neutral rating, expressing caution about the company’s pipeline diversification, despite a substantial market capitalization increase since October. These developments reflect Exelixis’s ongoing efforts in advancing its drug pipeline and achieving significant clinical milestones.

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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