Analyst Robert Burns from H.C. Wainwright reiterated a Buy rating on Exelixis (EXEL – Research Report) and keeping the price target at $40.00.
Robert Burns has given his Buy rating due to a combination of factors including the recent FDA approval of cabozantinib for treating certain neuroendocrine tumors. This approval is significant as it expands the use of cabozantinib to a broader patient population, potentially enhancing Exelixis’s market position and revenue prospects. The approval was based on strong Phase 3 trial results, which demonstrated a substantial improvement in progression-free survival for patients treated with cabozantinib compared to placebo.
Additionally, Burns highlights upcoming catalysts that could further drive the company’s growth, such as presentations of preclinical results for pipeline assets and clinical data readouts from ongoing trials. The valuation analysis, using a discounted cash flow approach, supports a 12-month price target of $40 per share, reflecting confidence in the company’s financial outlook. However, Burns also notes potential risks, including commercial challenges and the need for favorable data from ongoing clinical programs.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a $45.00 price target.
Based on the recent corporate insider activity of 100 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.