Stifel raises Exelixis stock price target to $36, maintains hold

On Wednesday, Stifel analysts adjusted their stance on Exelixis (NASDAQ:EXEL) shares, raising the price target to $36 from the previous $30, while keeping a Hold rating on the stock. The new price target reflects several key factors, including anticipated operational expenditure growth moderation in the forecast for fiscal year 2025 and beyond. According to InvestingPro data, Exelixis demonstrates strong financial health with a "GREAT" overall score, supported by impressive revenue growth of 17.3% in the last twelve months.

Stephen Willey from Stifel cited the expected completion of Exelixis’s share repurchase program by the end of 2025 as a contributing factor to the revised target. The program, which is set to repurchase approximately $294 million worth of shares, is seen as a potential near-term boost for the stock. InvestingPro analysis highlights management’s aggressive share buyback strategy as a key strength, alongside the company’s strong balance sheet with more cash than debt.

The updated valuation also takes into account lowered probability of success (POS) estimates for zanzalintinib in treating metastatic colorectal cancer (mCRC) and squamous cell carcinoma of the head and neck (SCCHN). These estimates have been adjusted to 40% and 30%, respectively, and are integral to the firm’s discounted cash flow (DCF)-based valuation method.

Despite the increased price target, Stifel remains cautious with a Hold rating on Exelixis stock. The firm’s position indicates a view that the stock, while showing potential positive factors, may not outperform the market at this time.

Investors tracking Exelixis shares will note the updated price target and the factors influencing Stifel’s valuation, including the operational expenditure outlook and the anticipated impact of the share repurchase program. Based on current market data, InvestingPro’s Fair Value analysis suggests that Exelixis shares may be undervalued, with additional metrics and insights available through the platform’s comprehensive analysis tools.

In other recent news, Exelixis has been the focus of several analysts’ reports. JMP Securities maintained a Market Outperform rating and a $41.00 price target for Exelixis shares, highlighting the company’s fourth quarter 2024 revenue and its developmental focus on zanzalintinib, an investigational drug with potential. Stifel analysts maintained a Hold rating with a $30.00 price target on Exelixis stock, following details from the STELLAR-001 metastatic colorectal cancer (mCRC) expansion cohort. Meanwhile, Truist Securities raised its price target for Exelixis shares to $43.00, based on encouraging data from the Phase 1 STELLAR-001 study. Lastly, H.C. Wainwright reaffirmed a Buy rating and a $40.00 price target for Exelixis shares, following recent clinical trial results involving the STELLAR-001 trial.

In other company news, Metsera, an emerging player in the obesity market, saw its stock soar by 47% on its first trading day. This strong IPO performance was highlighted in JMP Securities’ latest industry overview for the biotechnology sector. Additionally, merger and acquisition activities in the biotech space were significant, with the total value of deals reaching approximately $18 billion, surpassing any monthly total from the previous year.

These recent developments underscore the dynamic nature of the biotech industry and the potential for companies like Exelixis and Metsera. However, it’s important to note that these are analysts’ projections and should not be taken as guaranteed outcomes.

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