Stifel maintains hold rating, $30 target on Exelixis stock

Published 27/01/2025, 16:24
Stifel maintains hold rating, $30 target on Exelixis stock

On Monday, Stifel analysts maintained a Hold rating with a $30.00 price target on Exelixis stock (NASDAQ:EXEL), currently trading at $33.32 with a market capitalization of $9.5 billion. According to InvestingPro data, the company maintains a "GREAT" financial health score of 3.5, suggesting strong operational fundamentals. The firm's analysis followed the presentation of additional details from the STELLAR-001 metastatic colorectal cancer (mCRC) expansion cohort at the recent ASCO-GI meeting. The data included updated overall survival (OS), median progression-free survival (mPFS), and median OS per PD-L1 expression status, along with more detailed safety and tolerability information.

The analysts noted that the results provided incremental efficacy data for zanzalintinib, with or without atezolizumab. Nevertheless, their initial outlook on how these findings might influence the Phase 3 STELLAR-303 trial's prospects has not changed. This perspective is particularly informed by the amended STELLAR-303 trial's basis on data from the LEAP-017 trial. The LEAP-017 trial evaluated lenvatinib, a tyrosine kinase inhibitor (TKI) with preferential activity in RAS-mutant mCRC patients, who make up the majority of Phase 3 third-line or higher (3L+) mCRC trial populations.

The Stifel analysts highlighted that the results expected in the second half of 2025 from the STELLAR-303 trial are likely to have a more significant impact on Exelixis's market sentiment than on its valuation. This sentiment is driven by the first Phase 3 STELLAR read-out and previously issued $5 billion peak sales guidance for Zanza. The broader analyst consensus shows mixed views, with price targets ranging from $23 to $42, reflecting the market's varying expectations for the trial outcomes. However, the valuation impact is seen as limited due to the small patient numbers and treatment duration.

Additionally, the presentation of CABINET subgroup data at the same meeting did not alter Stifel's directionally positive thesis on neuroendocrine tumors (NET)-related treatments. The firm remains cautiously optimistic despite the recent decline in Exelixis shares following the abstract release. InvestingPro data shows the stock has experienced a -10.55% return over the past week, though it maintains a strong 38.44% gain over the last six months. For deeper insights into Exelixis's valuation and growth prospects, including 12 additional ProTips and comprehensive financial analysis, check out the full Pro Research Report available on InvestingPro.

In other recent news, Exelixis has seen considerable activity in earnings, revenue, and analyst evaluations. The biopharmaceutical company recorded 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 the fiscal year 2025, Exelixis has projected net product sales in the range of $1.95 to $2.05 billion.

Exelixis is currently conducting six pivotal trials with zanzalintinib, targeting various cancers. Outcomes from these trials are anticipated in the second half of 2025 and into 2026. Truist Securities increased its price target for Exelixis shares to $43.00, based on optimism around the company's drug Zanza.

Analysts from various firms have updated their outlooks on Exelixis. Morgan Stanley (NYSE:MS) upgraded Exelixis's stock rating from Equalweight to Overweight and raised the price target to $40.00. JMP Securities maintained its Market Outperform rating and a price target of $41.00 on Exelixis, while Oppenheimer downgraded Exelixis stock from Outperform to Perform, adjusting the price target to $33.00. These are the latest developments shaping the financial landscape for Exelixis.

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