Morgan Stanley analyst Sean Laaman maintained a Buy rating on Exelixis today and set a price target of $46.00.
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Sean Laaman has given his Buy rating due to a combination of factors including the strong market performance of Exelixis’s Cabometyx, particularly in the treatment of neuroendocrine tumors (NET). The drug has quickly captured a significant share of the market for second-line and third-line oral therapies, achieving a 35% new patient market share. This rapid uptake is consistent across both academic and community healthcare settings, indicating a broad acceptance and demand for the therapy.
Additionally, the financial results for the second quarter showed that NET contributed approximately 4% to Cabometyx’s total sales, surpassing consensus expectations. Management’s confidence in the product’s potential is reflected in their reiterated guidance for fiscal year 2025, with expectations for further updates as the NET launch progresses. Furthermore, Exelixis’s ongoing engagement with regulators and plans to file new data in colorectal cancer (CRC) underscore the company’s strategic focus on expanding its market presence and therapeutic offerings.
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.