Gold prices buoyed by tariff fears; US duties on 1-kilo bars spur supply concerns
On Thursday, Oppenheimer analysts downgraded Exelixis (NASDAQ:EXEL) stock from Outperform to Perform, adjusting the price target to $33.00 from the previous $41.00. The decision came amid concerns about the potential differentiation of the company's drug zanzalintinib compared to its existing product cabozantinib, as indicated by recent data presented at the American Society of Clinical Oncology Gastrointestinal Cancers Symposium (ASCO-GI). According to InvestingPro data, Exelixis maintains a "GREAT" financial health score of 3.52, with particularly strong profitability metrics including a 96.25% gross margin.
Exelixis had a strong performance in 2024, with its shares rising approximately 39%, in contrast to a 1% decline in the Nasdaq Biotechnology Index (NBI). The company's stock has shown remarkable momentum, posting a 46% gain over the past six months despite a recent 10% pullback last week. The positive trend was influenced by the resolution of a patent issue related to cabozantinib and the progress in expanding its label for the treatment of neuroendocrine tumors (NETs). However, the attention has now turned to zanzalintinib, with several late-stage program outcomes expected in 2025. InvestingPro subscribers have access to 12 additional investment tips and comprehensive analysis for Exelixis, including detailed insights into its financial health and growth prospects.
Despite the anticipation for these readouts, the analysts expressed reservations. They acknowledged that the data from the STELLAR-001 study might reduce the risk for the phase 3 STELLAR-303 trial in metastatic colorectal cancer (mCRC). However, the lack of clear differentiation for zanzalintinib has led to a more cautious stance from the firm. The analysts have decided to await further details before making additional assessments.
The revised price target of $33 reflects updates to Oppenheimer's financial model for Exelixis, taking into account the new developments and expectations surrounding the company's drug pipeline. Exelixis is expected to continue monitoring the performance and potential of zanzalintinib in its upcoming trial readouts.
In other recent news, Exelixis has seen substantial activity in earnings, revenue, and analyst evaluations. The 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.
Several financial firms have updated their outlooks on Exelixis. 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. Similarly, Oppenheimer, Truist Securities, Guggenheim, and Brookline Capital Markets have all raised their price targets for Exelixis, maintaining positive ratings, while BMO Capital Markets and BofA Securities downgraded the company despite raising their price targets.
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.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.