Paul Choi, an analyst from Goldman Sachs, has initiated a new Buy rating on Exelixis (EXEL).
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Paul Choi’s rating is based on several key factors that highlight Exelixis’s potential for growth. The company is expected to continue its strong commercial performance with Cabometyx, even as it approaches the loss of exclusivity. This is complemented by the promising outlook for zanzalintinib, which is anticipated to fill the revenue gap left by Cabometyx. The recent market pullback has made EXEL shares an attractive investment opportunity, as the debate among investors focuses on zanzalintinib’s ability to sustain revenue growth over the next few years.
Moreover, zanzalintinib has shown significant promise, with a clear path to commercialization in metastatic colorectal cancer by fiscal year 2027. There is also notable enthusiasm from key opinion leaders regarding its potential in treating non-clear cell renal cell carcinoma, suggesting a strong market uptake due to unmet patient needs and its clinical advantages. Additionally, despite the maturity of the RCC and HCC markets, Exelixis is expected to achieve incremental market share gains and benefit from early adoption in neuroendocrine tumors, further supporting the Buy rating.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $50.00 price target.