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On Monday, Truist Securities increased its price target for Exelixis (NASDAQ:EXEL) shares to $43.00, up from the previous target of $42.00, while reaffirming a Buy rating on the stock. The new target represents significant upside potential from the current trading price of $33.46. According to InvestingPro data, analyst consensus remains bullish, with price targets ranging from $23 to $42, reflecting the market's optimistic outlook for this $9.54 billion market cap company. The adjustment comes after encouraging data from a Phase 1 study, STELLAR-001, which has bolstered confidence in the potential success of the company's Phase 3 study for its drug Zanza in a specific colorectal cancer patient population.
The Phase 1 study results have led Truist Securities to anticipate positive outcomes from the ongoing Phase 3 study, STELLAR-303, particularly for patients with colorectal cancer that has not spread to the liver, also known as no liver metastases (NLM). This patient group represents approximately 30% of the broader colorectal cancer (CRC) population. The company's strong financial position, with a remarkable 96.25% gross profit margin and 17.31% revenue growth in the last twelve months, provides solid backing for its clinical development programs. InvestingPro subscribers can access 10+ additional insights about Exelixis's financial health and growth prospects through the comprehensive Pro Research Report. The analysts at Truist believe that the STELLAR-303 study could clear the path for Zanza's initial approval in this specialized indication.
The optimism is rooted in the more mature overall survival data that has been gathered from the STELLAR-001 study. Based on this data, Truist Securities has refined its CRC revenue model for Exelixis, which has led to the increased probability of success and the subsequent rise in the price target for the company's stock.
The Exelixis team is focused on the development of Zanza for colorectal cancer patients without liver metastases, a group that has been identified as the primary target for the ongoing Phase 3 trial. The positive sentiment from Truist Securities reflects the potential for Zanza to secure approval and cater to this niche market within the broader CRC patient population.
Exelixis is committed to advancing the STELLAR-303 study and is hopeful that the trial will demonstrate the efficacy of Zanza in improving outcomes for colorectal cancer patients. The company's stock price target increase by Truist Securities underscores the market's anticipation for the drug's future prospects and its potential impact on Exelixis's financial performance. With an excellent InvestingPro Financial Health Score of 3.5 (GREAT) and strong fundamentals, including a current ratio of 3.93 and minimal debt, the company appears well-positioned to execute its clinical development strategy.
In other recent news, Exelixis has reported 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. The company has provided net product sales guidance for the fiscal year 2025 in the range of $1.95 to $2.05 billion. 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.
Exelixis is currently conducting six pivotal trials with zanzalintinib, a promising drug targeting various cancers. Outcomes from these trials are anticipated in the second half of 2025 and into 2026. H.C. Wainwright reaffirmed a Buy rating and a $40.00 price target for Exelixis shares, following recent clinical trial results. These developments underscore the dynamic financial landscape for Exelixis.
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