Stifel maintains hold rating on Exelixis stock, sets $38 target

On Tuesday, Stifel analysts reaffirmed a Hold rating on Exelixis (NASDAQ:EXEL) stock, maintaining a price target of $38, below the current trading price of $42.75. According to InvestingPro data, the company maintains an EXCELLENT financial health score and a perfect Piotroski Score of 9, indicating strong operational efficiency. The decision follows presentations at the ASCO meeting, where Exelixis showcased data on zanzalintinib in advanced solid tumors and ccRCC.

The presentations included both poster and oral formats, highlighting dose-escalation and dose-expansion data for zanzalintinib, a treatment studied in combination with nivolumab and nivolumab/relatlimab. Analysts noted that the 100mg dose of zanzalintinib shows similarities to the previously used 60mg cabozantinib dose, especially in terms of patient dose modifications. With a year-to-date return of 28.77%, investors have shown confidence in Exelixis’s development pipeline. InvestingPro subscribers have access to 12 additional ProTips and comprehensive analysis of Exelixis’s financial health and growth prospects.

The data from the ccRCC dose-expansion study with zanzalintinib and nivolumab was compared to the P3 CHECKMATE-9ER data involving cabozantinib and nivolumab. The analysts pointed out a higher incidence of Grade >3 adverse events in the zanzalintinib group, which they attribute to dose selection decisions.

Stifel analysts expressed interest in Merck (NSE:PROR)’s future trial design plans for ccRCC, noting a shift away from sunitinib-based control arms.

In other recent news, Exelixis reported promising results from its STELLAR-002 trial, which tested the efficacy of zanzalintinib in combination with other treatments for advanced clear cell renal cell carcinoma. The trial showed an objective response rate of 63% for patients treated with zanzalintinib and nivolumab, and a disease control rate of 90%. Meanwhile, Exelixis’s Cabometyx sales reached $511 million, a 36% increase year-over-year, surpassing analyst estimates and contributing to a revised financial guidance. Stifel raised its price target for Exelixis to $38, maintaining a Hold rating, while TD Cowen increased its target to $44, reiterating a Buy rating. RBC Capital also maintained an Outperform rating with a $40 target, emphasizing the company’s strong performance and growth potential. Analysts have highlighted Exelixis’s strategic adjustments in clinical trials, such as the STELLAR-303 trial for colorectal cancer, which now includes dual primary endpoints. The company continues to focus on its clinical pipeline and share repurchase activities, indicating confidence in its market value. These developments underscore Exelixis’s efforts in expanding its product offerings and enhancing its market position in the biotechnology sector.

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