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Wednesday, Lucid (NASDAQ:LCID) Capital Markets adjusted the price target for Exelixis (NASDAQ:EXEL) stock, raising it to $37 from the previous target of $36, while maintaining a Neutral rating. According to InvestingPro data, analyst targets for the stock range from $29 to $48, with the company currently appearing undervalued based on its Fair Value analysis. This change follows Exelixis’s announcement of its first-quarter financial results for 2025, which surpassed consensus expectations and led to an increase in the full-year guidance.
On Tuesday, after the market closed, Exelixis reported that its first-quarter top-line revenues reached approximately $555.4 million, which was significantly higher than the Visible Alpha consensus estimate of around $495.2 million. The company’s impressive performance is reflected in its perfect Piotroski Score of 9, as reported by InvestingPro, indicating strong financial health. Non-GAAP earnings per share for the quarter were $0.62, outperforming the consensus estimate of $0.42. In response to these strong results, the company has raised its revenue guidance for the full year 2025 to an estimated range of $2.25 to $2.35 billion, up from the previous forecast of $2.15 to $2.25 billion.
The company’s revenue growth has been primarily driven by its cancer drug, Cabometyx, particularly in treating renal cell carcinoma (RCC). This success has contributed to impressive financial metrics, with a 24.49% revenue growth and an industry-leading gross profit margin of 96.78% over the last twelve months. Management highlighted Cabometyx’s increasing market share as a key factor in the company’s performance. However, Lucid Capital Markets noted that Exelixis provided limited information regarding the sales trajectory for its newly approved treatment for neuroendocrine tumors (NET), which received approval in March 2025.
Lucid Capital Markets also pointed out that while the success of Cabometyx is promising, they are looking forward to additional data from Exelixis’s pipeline, specifically mentioning zanzalintinib, before adopting a more positive stance on the company’s prospects.
The revised price target also takes into account the incremental $500 million share buyback plan that Exelixis implemented in February 2025. InvestingPro analysis highlights that management has been aggressively buying back shares, one of several positive indicators identified in their comprehensive Pro Research Report. The analyst concluded with a reiteration of the Neutral rating, signaling a wait-and-see approach to the company’s stock until further developments provide additional clarity on its future growth potential.
In other recent news, Exelixis reported a strong performance for the first quarter of 2025, surpassing Wall Street’s expectations. The company achieved earnings per share of $0.62, significantly higher than the projected $0.37, and reported revenue of $555.4 million, exceeding the anticipated $495.3 million. This financial success was driven by robust sales of CABOMETYX, which generated $510.9 million in net product revenues. 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. JMP Securities also increased its price target for Exelixis stock to $47, following better-than-expected sales of cabozantinib. The firm maintained its Market Outperform rating, highlighting the company’s strategic efforts in targeting neuroendocrine tumors and the potential of its colorectal cancer treatment, zanza. Additionally, Exelixis secured FDA approval for new indications of CABOMETYX, enhancing its market potential and reinforcing its leadership in the oncology sector.
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