William Blair analyst Andy Hsieh has reiterated their bullish stance on EXEL stock, giving a Buy rating on July 24.
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Andy Hsieh’s rating is based on several key factors that underscore Exelixis’s potential for long-term growth. Despite a mixed quarter with softer-than-expected Cabometyx sales and a revenue miss, Hsieh emphasizes that the company’s fundamentals remain strong. The management’s strategic focus on expanding the clinical development of zanzalintinib, particularly through the success of the Phase III STELLAR-303 study in colorectal cancer, highlights the drug’s potential to surpass Cabometyx’s commercial success.
Moreover, Exelixis is poised to initiate several “second-wave” pivotal trials, which could significantly enhance its market position. Hsieh acknowledges the temporary setbacks, such as the higher-than-expected gross-to-net adjustments and increased inventory levels, but remains optimistic about the company’s ability to generate substantial cash flow through Cabometyx and the promising outlook for zanzalintinib. These factors collectively support his Buy rating, as he anticipates the stock will recover and perform well in the future.
In another report released on July 24, Citizens JMP also reiterated a Buy rating on the stock with a $50.00 price target.