H.C. Wainwright maintains $40 target on Exelixis stock

Published 27/01/2025, 14:02
H.C. Wainwright maintains $40 target on Exelixis stock

On Monday, H.C. Wainwright reaffirmed a Buy rating and a $40.00 price target for Exelixis (NASDAQ:EXEL) shares, following recent clinical trial results. Currently trading at $32.38, the stock has shown strong momentum with a 46% return over the past year. According to InvestingPro data, analyst targets range from $23 to $42, with the company maintaining a GREAT financial health score. The data was presented at the ASCO GI conference over the weekend and involved the STELLAR-001 trial, which tested zanzalintinib in combination with Tecentriq on patients with a specific type of colorectal cancer.

The phase 1b/2 trial targeted patients with unresectable, locally advanced or metastatic RASwt colorectal cancer (CRC) that had been previously treated and was non-microsatellite instability-high or non-mismatch repair-deficient. The combination treatment, which included 54 patients with a median of 2.5 prior treatments and 69% having liver metastases, showed a 7.4% objective response rate (ORR), a median progression-free survival (mPFS) of 4.0 months, and a median overall survival (mOS) of 11.7 months.

The results were notably better in patients without liver metastases, with an 18% ORR, an 8.2-month mPFS, and an 18.5-month mOS. Based on the data, H.C. Wainwright's analyst believes that it is too early to change the probability of approval for zanzalintinib in combination with Tecentriq for third-line or higher metastatic colorectal cancer (mCRC) treatment.

The analyst's commentary underscores the potential of zanzalintinib + Tecentriq, especially in the subgroup of patients without liver metastases. Despite the varying results across patient subgroups, the overall data supports the continued optimistic outlook for Exelixis's treatment regimen. The reiteration of the Buy rating and price target suggests confidence in the stock's future performance. This outlook aligns with the company's strong fundamentals, including 17.3% revenue growth and a robust 96.25% gross profit margin. For deeper insights into Exelixis's financial health and growth prospects, including 12 additional ProTips and comprehensive valuation metrics, visit InvestingPro.

In other recent news, Exelixis continues to make significant strides in the biopharmaceutical market. The company recently 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 fiscal year 2025, Exelixis has provided net product sales guidance in the range of $1.95 to $2.05 billion.

Exelixis is currently conducting six pivotal trials with zanzalintinib, a promising drug targeting various cancers, with outcomes anticipated in the second half of 2025 and into 2026. JMP Securities maintained its Market Outperform rating and a price target of $41.00 on Exelixis, citing the promising efficacy of zanzalintinib as a key asset for the company's future growth. However, Oppenheimer downgraded Exelixis stock from Outperform to Perform, adjusting the price target to $33.00 due to concerns about the drug's differentiation.

Morgan Stanley (NYSE:MS) upgraded Exelixis's stock rating from Equalweight to Overweight, raising the price target to $40.00, while Oppenheimer raised the price target for Exelixis shares to $41.00, maintaining an Outperform rating. These recent developments underscore the dynamic 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.

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