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RBC downgrades Exelixis on valuation ahead of Cabometyx cliff

RBC Capital analyst Leonid Timashev downgraded Exelixis (EXEL) to Sector Perform from Outperform with a price target of $50, up from $45. The firm believes the shares at current levels are fairly valuing the remaining branded Cabometyx cash flows and probability weighted life-cycle potential ahead of the 2031 patent cliff. RBC wants to see additional life cycle success that can offset the loss of Cabometyx before again recommending shares of Exelixis.

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