Wednesday - Oppenheimer has raised the price target for Exelixis (NASDAQ:EXEL) shares to $41.00 from the previous target of $38.00, while maintaining an Outperform rating on the stock. The stock is currently trading near its 52-week high of $37.31, having delivered an impressive 65% return over the past six months.
According to InvestingPro analysis, the company maintains a "GREAT" financial health score of 3.66, supported by strong fundamentals. The adjustment follows Exelixis' release of preliminary financial results for the fiscal year 2024 and updates on its business operations, including guidance for 2025 and key priorities.
The company reported that preliminary fourth-quarter sales from its cabo franchise were approximately $509 million, contributing to full-year product sales of around $1.805 billion. This figure marks an approximate 11% year-over-year growth, building on the company's strong revenue growth trend of 17.3% in the last twelve months. For the fiscal year 2025, Exelixis has provided net product sales guidance in the range of $1.95 to $2.05 billion.
InvestingPro data reveals the company maintains excellent liquidity with a current ratio of 3.93, positioning it well for continued growth. This forecast does not account for any potential contributions from the cabo label-expansion opportunity in neuroendocrine tumors (NETs), suggesting a steady growth trajectory for cabo in the established markets.
The removal of the cabo patent overhang and clinical advancements made in 2024 have been highlighted as significant catalysts for Exelixis in the upcoming year. The anticipated decision from the FDA regarding cabo's label-expansion in NETs, along with clinical readouts from the zanza trials across various studies, are particularly noteworthy.
Exelixis enthusiasts and investors are also looking forward to the company's Research and Development day scheduled for this year. The event is expected to provide further insights into Exelixis' progress and future plans.
In light of the recent updates and financial guidance, Oppenheimer has updated its model, which now supports the new price target of $41. The firm's analysis suggests confidence in Exelixis' continued growth and success in the market. For deeper insights into Exelixis' valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.
In other recent news, Exelixis has been the subject of significant developments in the financial sector. Truist Securities and Guggenheim have both maintained a Buy rating on Exelixis, with Truist raising the stock target to $42 due to promising sales prospects for its drug Cabometyx. Guggenheim also raised the price target to $42, showing optimism about the potential of zanzalintinib, a late-stage pipeline asset.
Brookline Capital Markets initiated coverage on Exelixis with a Buy rating and a price target of $40, foreseeing significant growth in sales of existing products and successful commercialization of new products. However, BMO Capital Markets and BofA Securities downgraded Exelixis due to a more balanced risk/reward scenario, despite raising their price targets.
Exelixis also reported a 9% increase in net product revenues, reaching $478 million, leading to a raised full-year revenue guidance for 2024. These developments come alongside the U.S. Food and Drug Administration's scheduled review of Exelixis's supplemental New Drug Application for CABOMETYX, and the ongoing clinical trials for zanzalintinib. These are the recent developments that have been shaping the financial landscape for Exelixis.
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