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On Wednesday, RBC Capital Markets reiterated an Outperform rating for Exelixis stock (NASDAQ:EXEL), maintaining a $40.00 price target. The firm’s analyst highlighted Exelixis’s strong performance in the first quarter of 2025, with particular emphasis on the robustness of the Cabozantinib (Cabo) franchise in the treatment of Renal Cell Carcinoma (RCC) and the positive impact from the recent launch for Neuroendocrine Tumors (NET). The company’s impressive 96.8% gross margin and 24.5% year-over-year revenue growth support this positive outlook. The company’s decision to raise its full-year 2025 revenue guidance by $100 million was noted, indicating that the full potential from the NET indication has not yet been completely accounted for. According to InvestingPro, Exelixis maintains excellent financial health with a perfect Piotroski Score of 9, indicating strong operational efficiency.
Exelixis’s management has also continued its share repurchase program, which RBC Capital interprets as a sign of management’s belief that the company’s shares are undervalued and their confidence in the business’s prospects. This aggressive share buyback strategy has contributed to an impressive 76% stock return over the past year. The analyst’s outlook for Exelixis’s sustainable growth remains focused on the commercial potential of Zanzalide (zanza) and upcoming pivotal data from several clinical trials. InvestingPro analysis reveals 10+ additional insights about Exelixis’s financial strength and market position.
The company is anticipating results from the STELLAR-303 trial for metastatic colorectal cancer (mCRC) in the second half of 2025, along with topline results from STELLAR-304 for non-clear cell RCC (nccRCC) and a go/no-go decision on STELLAR-305 for Head and Neck Squamous Cell Carcinoma (HNSCC; phase II portion). These milestones are significant for Exelixis, as they could further reinforce the company’s position in the oncology market.
In light of the recent quarterly results and the updated guidance for the fiscal year 2025, RBC Capital has adjusted its model for Exelixis. The company’s strong financial position is evidenced by its 22.8% return on assets and robust current ratio of 3.5x. The firm remains steadfast in its Outperform rating and $40 price target for the stock, reflecting a positive outlook on the company’s growth trajectory and market potential. For comprehensive analysis including Fair Value estimates and detailed financial metrics, visit InvestingPro, where you’ll find the full research report on Exelixis among 1,400+ top stocks.
In other recent news, Exelixis reported its first-quarter 2025 financial results, exceeding Wall Street expectations. The company achieved a revenue of approximately $555.4 million, surpassing the anticipated $495.3 million, and reported non-GAAP earnings per share of $0.62, outperforming the forecasted $0.42. This strong performance led to an increase in Exelixis’s full-year revenue guidance to a range of $2.25 to $2.35 billion. Following these results, Lucid (NASDAQ:LCID) Capital Markets raised the stock price target for Exelixis to $37, maintaining a Neutral rating, while JMP Securities increased their target to $47, retaining a Market Outperform rating. The company’s flagship product, cabozantinib, showed strong sales, contributing significantly to the revenue beat and guidance increase. Exelixis also highlighted the rapid market penetration of their newly approved treatment for neuroendocrine tumors, with over 70% of prescribers reached within three weeks of launch. Additionally, Exelixis has implemented a $500 million share buyback plan, further reflecting confidence in its financial health and future prospects.
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