Leerink Partners analyst Andrew Berens has maintained their neutral stance on EXEL stock, giving a Hold rating yesterday.
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Andrew Berens has given his Hold rating due to a combination of factors surrounding the recent developments in Exelixis’s clinical trials. The company’s announcement of positive topline results from the STELLAR-303 Phase 3 trial for zanzalintinib in metastatic colorectal cancer has been met with mixed reactions. While the trial showed a statistically significant improvement in overall survival for the intent-to-treat population, there are concerns about the recent revision of the primary endpoint, which could pose regulatory challenges with the FDA.
Additionally, while the trial’s success could extend Exelixis’s revenue stream beyond the expected loss of exclusivity for cabozantinib in 2030, there remain uncertainties about the commercial potential of zanzalintinib. Key questions about the treatment’s duration and benefit magnitude in various patient populations need to be addressed. As a result, Berens has opted not to adjust financial models until more comprehensive data is available, maintaining a cautious outlook with a Hold rating.
In another report released yesterday, Stifel Nicolaus also reiterated a Hold rating on the stock with a $38.00 price target.
Based on the recent corporate insider activity of 111 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EXEL in relation to earlier this year.