Chris Shibutani, an analyst from Goldman Sachs, maintained the Sell rating on Exelixis (EXEL – Research Report). The associated price target is $18.00.
Chris Shibutani has given his Sell rating due to several concerns surrounding Exelixis Inc. The fourth quarter results for the company were as expected, providing no new catalysts that would impact the stock value positively. Exelixis’s guidance for the fiscal year 2024 did not show any signs of significant growth, considering it included a conservative price increase for its key product, Cabozantinib (Cabo), and plans for a restructuring program aimed at reducing operating costs. While there are filings for potential label expansion for Cabo, Shibutani remains cautious, particularly regarding its efficacy in metastatic castration-resistant prostate cancer (mCRPC), as the results so far do not present a compelling case for overall survival.
Furthermore, the analyst highlights the impending ruling from the MSN II ANDA trial as a critical event, although the expectation is that Exelixis will maintain Cabo’s exclusivity until 2030. Despite this, there is no additional commentary from management to suggest any game-changing developments in the near term. Shibutani’s stance is further solidified by the unchanged price target of $18, indicating that the current valuation does not warrant a more optimistic investment outlook. Hence, the Sell rating points to a belief that the stock may underperform or that the company’s prospects do not justify a higher stock price at this time.
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Exelixis (EXEL) Company Description:
Exelixis, Inc. is a biopharmaceutical company, which engages in the development, commercialization, and discovery of new medicines for the treatment of cancer. It offers products under the brands of Cometriq, Cabometyx, and Cotellic. The company was founded by Corey S. Goodman and Stelios B. Papadopoulos on November 15, 1994 and is headquartered in Alameda, CA.
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