Exelixis Kept at Hold as Cabo Momentum Offsets Pipeline Uncertainty; Price Target Raised from $49 to $50

In a report released today, Sean Laaman from Morgan Stanley maintained a Hold rating on Exelixis, with a price target of $50.00.

Sean Laaman has given his Hold rating due to a combination of factors, balancing solid current performance with longer‑dated pipeline uncertainty. Cabo’s strong momentum, including high single‑digit revenue growth, rising prescription share, and management’s confidence in continued uptake across RCC and NET through 2026, supports a constructive near‑term view. The company is also benefiting from a fully deployed GI sales force that is already contributing to increased penetration in community settings and positioning Exelixis for a potential zanza colorectal cancer launch later in 2026.

At the same time, Laaman’s stance reflects that much of this strength appears reflected in the current share price, even after revising the price target up from $49 to $50. Key value drivers such as zanza’s broader role in RCC and other tumors depend on pivotal readouts (e.g., STELLAR‑303/304 and LITESPARK‑033/034) that will take time to mature and carry execution risk. While the sizable share repurchase program is shareholder‑friendly, the overall risk‑reward profile, in his view, remains balanced rather than clearly skewed to the upside, justifying a Hold rating.

In another report released today, Barclays also maintained a Hold rating on the stock with a $45.00 price target.