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On Wednesday, JMP Securities analyst Silvan Tuerkcan updated the price target for Exelixis stock, raising it to $47.00 from the previous target of $41.00. The firm retained its Market Outperform rating for the biotechnology company, which is listed on the NASDAQ under the ticker EXEL. According to InvestingPro analysis, Exelixis demonstrates excellent financial health with a perfect Piotroski Score of 9, and current analysis suggests the stock is trading near its Fair Value.
The adjustment comes after Exelixis reported better-than-expected sales for cabozantinib, its flagship product, which led to top- and bottom-line beats. The company’s strong performance is reflected in its impressive 24.49% revenue growth and 96.78% gross profit margin over the last twelve months. Notably, this marked the first time in over eight years that the company has increased its full-year guidance in the first quarter, this time by $100 million.
Tuerkcan noted that cabozantinib’s sales exceeded consensus due to favorable dynamics within the first quarter, including stabilized net pricing and an 18% year-over-year growth in total prescriptions (TRx). These figures also surpassed JMP Securities’ own estimates, which were already higher than the consensus.
The first-quarter update from Exelixis also highlighted an aggressive sales team effort targeting neuroendocrine tumors (NETs). The company succeeded in reaching over 70% of NET prescribers within the initial three weeks of launch.
The increased price target to $47 is derived from a discounted cash flow (DCF) analysis, taking into account the accelerated sales of cabozantinib. Additionally, the firm has raised the probability of success (PoS) for zanza, Exelixis’s treatment in colorectal cancer (CRC), which contributed to the revised target. InvestingPro subscribers can access 10+ additional investment tips and a comprehensive Pro Research Report that provides deep-dive analysis of Exelixis’s financial health, valuation metrics, and growth prospects.
In other recent news, Exelixis Inc (NASDAQ:EXEL). reported its first-quarter 2025 earnings, significantly surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $0.62, which was well above the forecasted $0.37. Exelixis’s revenue also exceeded projections, reaching $555.4 million compared to the anticipated $495.3 million. Following these results, Exelixis raised its full-year net product revenue guidance by $100 million, now expecting between $2.05 billion and $2.15 billion.
Additionally, Exelixis received FDA approval for new indications of its CABOMETYX product, which is anticipated to enhance its market potential. The company also highlighted ongoing investments in research and development, with expectations for data readouts from zanzolitinib trials in multiple indications in the latter half of 2025. In terms of market strategy, Exelixis continues to focus on expanding its product line and capturing significant market opportunities, particularly in the oncology sector. The recent developments position Exelixis well for continued growth and investor interest.
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