Wells Fargo analyst Derek Archila has maintained their bullish stance on EXEL stock, giving a Buy rating yesterday.
Derek Archila’s Buy rating for Exelixis is grounded on a number of elements, including the anticipated growth from the company’s lead product, Cabozantinib (cabo), despite a conservative 2024 net product growth guide due to limited price increases under the Inflation Reduction Act. He recognizes that while slowing top-line growth may raise concerns for 2024, potential approvals in metastatic castration-resistant prostate cancer (mCRPC) and pancreatic and extra-pancreatic neuroendocrine tumors (p/epNETs) could drive growth in 2025. Archila’s forecast aligns with market expectations for 2024 but is slightly more conservative for 2025, suggesting a need for the cabo pipeline to deliver as projected.
Furthermore, Archila’s rating takes into account the upcoming ruling from the patent trial with Mylan (MSN), which is expected in the spring of 2024. A positive outcome could significantly lift the overhang on Exelixis’s shares. He also notes potential opportunities for Cabozantinib in mCRPC and p/epNETs, forecasting substantial peak sales in these indications, contingent upon the successful capture of these markets and the life cycle of Cabozantinib’s exclusivity. While updates to Exelixis’s pipeline are expected to be modest, Archila maintains a $28 price target, indicating his continued confidence in the company’s value proposition.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $25.00 price target.
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Based on the recent corporate insider activity of 78 insiders, corporate insider sentiment is neutral on the stock.
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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.
Read More on EXEL:
- EXEL Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- Exelixis price target raised to $25 from $24 at Barclays
- Cantor Fitzgerald biotech analysts hold an analyst/industry conference call
- Exelixis announces results of study evaluating cabozantinib in mCRPC treatment
- Bristol Myers, Exelixis announce four-year results from Opdivo-Cabometyx trial
