Analyst Robert Burns from H.C. Wainwright reiterated a Buy rating on Exelixis (EXEL – Research Report) and increased the price target to $53.00 from $47.00.
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Robert Burns has given his Buy rating due to a combination of factors, primarily the promising results from Exelixis’s STELLAR-303 phase 3 trial. The trial demonstrated a statistically significant improvement in overall survival for patients treated with zanzalintinib in combination with atezolizumab, compared to the existing treatment, regorafenib. This positive outcome significantly increases the likelihood of regulatory approval for the new treatment combination, prompting Burns to raise the probability of approval to 80% from the previous 40%.
Additionally, Burns highlights upcoming catalysts that could further enhance the company’s prospects, including data readouts from other ongoing trials and presentations of early-phase data for other treatments. The analyst’s valuation, using a discounted cash flow analysis, supports a 12-month price target of $53 per share, reflecting confidence in Exelixis’s commercial potential. However, Burns also notes potential risks, such as commercial challenges with existing products and the need for continued positive clinical data, which investors should consider.
In another report released on June 24, Jefferies also maintained a Buy rating on the stock with a $50.00 price target.