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On Wednesday, TD Cowen raised its price target on Exelixis stock (NASDAQ:EXEL) to $44.00, up from the previous $38.00, while reaffirming a Buy rating on the shares. The adjustment follows a strong first-quarter performance by the company and an increase in its financial guidance. According to InvestingPro data, Exelixis maintains a "GREAT" financial health score of 3.68, with the stock currently trading near its Fair Value.
The firm’s analyst highlighted Exelixis’s robust quarterly results and the potential for continued revenue growth. Supporting this outlook, InvestingPro data shows impressive revenue growth of 24.5% over the last twelve months, with total revenue reaching $2.3 billion. The analyst’s optimism is partly based on the expectation of increased sales of cabozantinib (cabo), the company’s flagship product, for the treatment of various types of cancer. The revised forecast projects cabo sales to reach $2.2 billion in fiscal year 2025, an increase of $121 million, and $2.34 billion in fiscal year 2026, an increase of $85 million. These projections are still deemed conservative, especially considering the opportunity in neuroendocrine tumors (NET) and the promising CABINET study data.
In addition to sales forecasts, the analyst has increased the non-GAAP earnings per share (EPS) estimate for fiscal year 2025 to $2.73, which represents an increment of $0.38. The price target is grounded on a 15x multiple of the anticipated $2.94 non-GAAP EPS in 2026. This valuation multiple is considered appropriate, balancing the near-term earnings upside against the long-term risks associated with the patent expiration of cabo in 2030.
The analyst also suggests that there could be further upside to the valuation multiple. Positive outcomes from the zanza trial data expected in the second half of 2025, along with the progression of Exelixis’s early-phase pipeline, could provide additional growth levers for the company’s stock valuation.
Exelixis’s financial position and product pipeline development appear to be on a positive trajectory, with the company poised to capitalize on its research and market opportunities in the coming years. The raised price target from TD Cowen reflects confidence in Exelixis’s growth potential and its ability to navigate the competitive landscape in the biotechnology sector.
In other recent news, Exelixis reported impressive first-quarter 2025 financial results, surpassing Wall Street expectations with earnings per share of $0.62 and revenues reaching $555.4 million, both significantly above analyst forecasts. Following these results, the company increased its full-year revenue guidance to a range of $2.25 to $2.35 billion, reflecting strong performance in its cancer drug, Cabometyx, especially in treating renal cell carcinoma. This robust performance led JMP Securities to raise its price target for Exelixis to $47, maintaining a Market Outperform rating, while RBC Capital reiterated its Outperform rating with a $40 target, citing the company’s strong growth potential.
Lucid (NASDAQ:LCID) Capital also adjusted its price target for Exelixis to $37, maintaining a Neutral rating, highlighting the company’s limited information on its newly approved treatment for neuroendocrine tumors. Exelixis’s management continued its share repurchase program, which analysts interpret as a sign of confidence in the company’s undervalued shares. The company is set to release pivotal data from several clinical trials in the second half of 2025, which could further strengthen its position in the oncology market.
Exelixis is actively pursuing business development opportunities, particularly in the GU/GI oncology space, while maintaining a focus on advancing its pipeline with new clinical assets. The company’s strategic focus and recent FDA approvals have positioned it well in the competitive oncology market, with analysts expressing optimism about its future growth prospects.
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