Stifel raises Exelixis stock price target to $38 on robust sales

Published 14/05/2025, 15:12
Stifel raises Exelixis stock price target to $38 on robust sales

On Wednesday, Stifel analysts adjusted their outlook on Exelixis (NASDAQ:EXEL), increasing the price target from $36.00 to $38.00 while maintaining a Hold rating on the stock. According to InvestingPro data, the company has achieved an impressive 76% return over the past year, with analysts setting price targets ranging from $29 to $48. The revision follows the company’s impressive Cabometyx sales figures, which reached $511 million, marking a 36% year-over-year increase. This performance surpassed both Stifel’s and the consensus estimates, attributed to a significant uptick in total prescriptions (TRx) and new prescriptions (NRx), which grew by 18% and 27% year-over-year, respectively. The company’s overall revenue growth stands at 24.5% for the last twelve months, with an exceptional gross profit margin of 96.8%. Want deeper insights? InvestingPro offers comprehensive analysis with 12 additional key tips about Exelixis’s performance.

Exelixis has also been making strides in gaining market share among competing tyrosine kinase inhibitors (TKIs). Although the exact impact of off-label use prior to the first quarter of 2025 label expansion into neuroendocrine tumors (NET) could not be quantified, management acknowledged that it had contributed to sales. With the official NET launch, analysts anticipate it will bolster fiscal year 2025 top-line growth and potentially lead to an upward revision in guidance beyond the $100 million increase announced today.

The firm’s analysis suggests that the second half of 2025 could bring more excitement for investors with the clinical developments of zanzalintinib. Two significant studies, STELLAR-303 and STELLAR-304, are expected to reveal top-line data. The former has been amended to include dual primary overall survival endpoints in both non-liver metastasis (NLM) and intent-to-treat (ITT (NYSE:ITT)) patients, while the latter targets a specific first-line non-clear cell renal cell carcinoma (nccRCC) population and is deemed to have a high probability of success.

In addition to the robust sales and promising clinical pipeline, Exelixis’s aggressive share repurchase activity underscores management’s confidence in the company’s value. In the first quarter of 2025, the company bought back $289 million in shares, with $505 million remaining in the repurchase authorization. This buyback strategy is anticipated to provide a solid support level for the company’s stock price. The company maintains strong financial health with a perfect Piotroski Score of 9 and holds more cash than debt on its balance sheet, demonstrating prudent financial management. Discover more detailed financial metrics and exclusive insights with InvestingPro’s comprehensive research report, part of their coverage of over 1,400 US stocks.

Stifel’s updated model primarily reflects heightened expectations for net estimates in fiscal year 2025 and beyond, taking into account the potential market expansion following the NET indication launch.

In other recent news, Exelixis reported robust first-quarter 2025 financial results, exceeding Wall Street expectations with earnings per share of $0.62, compared to the forecasted $0.37, and revenue of $555.4 million, surpassing the anticipated $495.3 million. Following these results, the company raised its full-year revenue guidance by $100 million, now projecting between $2.25 billion and $2.35 billion. Analysts from TD Cowen, RBC Capital, Lucid (NASDAQ:LCID) Capital Markets, and JMP Securities have adjusted their price targets for Exelixis, reflecting confidence in the company’s performance and growth potential. TD Cowen increased its target to $44 while maintaining a Buy rating, citing strong quarterly results and potential revenue growth from cabozantinib sales. RBC Capital reiterated an Outperform rating with a $40 target, emphasizing the solid performance of the Cabozantinib franchise. Lucid Capital raised its target to $37 with a Neutral rating, following Exelixis’s announcement of exceeding first-quarter expectations. Meanwhile, JMP Securities increased its target to $47, maintaining a Market Outperform rating, after the company reported better-than-expected sales for cabozantinib. These developments highlight Exelixis’s strong market position and the positive outlook from analysts regarding its future growth.

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