Moody’s downgrades Senegal to Caa1 amid rising debt concerns
Investing.com - Goldman Sachs initiated coverage on Exelixis (NASDAQ:EXEL), a $10.5 billion market cap biopharmaceutical company, with a Buy rating and a $47.00 price target on Wednesday. According to InvestingPro data, the company maintains impressive profitability with a 96.6% gross margin.
The investment bank views Exelixis shares as attractively priced following a recent pullback, with investor focus expected to remain on zanzalintinib’s potential to offset revenue losses when Cabometyx loses exclusivity later this decade. This view aligns with InvestingPro’s analysis, which shows the stock trading at a low P/E ratio relative to near-term earnings growth, with revenue growing at 10.7% year-over-year.
Goldman Sachs considers zanzalintinib largely de-risked with commercialization in metastatic colorectal cancer expected to begin in fiscal year 2027, noting key opinion leaders’ enthusiasm for the drug’s potential in non-clear cell renal cell carcinoma.
For Cabometyx, Goldman Sachs expects Exelixis to continue gaining modest market share in the mature renal cell carcinoma and hepatocellular carcinoma markets before generic entry, complemented by strong early uptake in neuroendocrine tumors.
The firm’s $47 price target represents significant upside potential from Exelixis’s current trading level.
In other recent news, Exelixis reported a change in leadership, appointing Dana T. Aftab, Ph.D., as Executive Vice President of Research and Development. Concurrently, Amy C. Peterson, M.D., concluded her service as Executive Vice President of Product Development and Medical Affairs. On the financial front, Exelixis missed revenue expectations in its second-quarter 2025 earnings report, with Cabometyx sales reaching $520 million, falling short of Wall Street’s $530 million estimate. Following these results, RBC Capital lowered its price target for Exelixis to $45, maintaining a Sector Perform rating. Truist Securities also reduced its price target to $49 while keeping a Buy rating. Additionally, H.C. Wainwright decreased its price target to $46, citing the halt of the STELLAR-305 trial for zanzalintinib in SCCHN. Conversely, Stifel raised its price target to $41, reflecting a positive outlook on the success probability for zanza in metastatic colorectal cancer. These developments highlight a period of transition and mixed expectations for Exelixis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.