Derek Archila, an analyst from Wells Fargo, maintained the Hold rating on Exelixis. The associated price target was lowered to $36.00.
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Derek Archila has given his Hold rating due to a combination of factors impacting Exelixis’s stock performance. The company’s recent earnings report revealed that revenue from its key product, Cabo, fell short of expectations for the second quarter of 2025. Despite this miss, management has maintained its full-year guidance, suggesting some confidence in future performance. However, the decision not to proceed with the HNSCC indication for their drug Zanza raises concerns about its competitive positioning and differentiation from Cabo.
Additionally, while the early-stage pipeline shows promise with diverse modalities and targets, it remains too early to assign significant value until more data is available. The market’s reaction to these developments has been negative, with shares trading down significantly. Archila notes that the stock’s future performance will likely hinge on upcoming data from the -303 trial for Zanza, which could either bolster or further dampen investor confidence.
In another report released today, Barclays also maintained a Hold rating on the stock with a $40.00 price target.
EXEL’s price has also changed moderately for the past six months – from $32.600 to $44.390, which is a 36.17% increase.