Exelixis (NASDAQ:EXEL) shares rose more than 2% intra-day today after Truist Securities analysts increased their price target on the stock to $42, up from $38, while reaffirming a Buy rating. The move reflects optimism about the company’s solid performance and promising outlook, particularly as its flagship products continue to show strong growth potential.
Exelixis has demonstrated a robust base business, anchored by its leading cancer therapy, Cabometyx, which now shows enhanced potential in treating neuroendocrine tumors (NET). These updated sales expectations, coupled with model adjustments, have contributed to the increased valuation. Despite recent gains in Exelixis’ stock price, the analysts see further room for growth, citing the company’s reliable revenue stream and pipeline of catalysts.
Of particular note is Zanza, a next-generation therapy derived from Cabometyx, which has multiple significant milestones expected in 2025. These could act as value drivers, potentially pushing Exelixis’ stock higher as they unfold.
While the broader biotech market remains volatile, the analysts believe that Exelixis offers a compelling blend of stability and upside potential.