Exelixis stock maintains buy rating at H.C. Wainwright on promising data
Investing.com
Published Jun 12, 2025 09:01AM ET
H.C. Wainwright reiterated a buy rating and $47.00 price target on Exelixis (NASDAQ:EXEL), a $11.3 billion market cap biopharmaceutical company with impressive financial metrics including a perfect Piotroski Score of 9, following the company's presentation of dose expansion results for zanzalitinib at the American Society of Clinical Oncology (ASCO) meeting. The firm previously had a $40 price target on the stock. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with analyst targets ranging from $29 to $56.
The data showed that zanzalitinib in combination with Opdivo achieved a 63% confirmed objective response rate with an 8% complete response rate in first-line clear cell renal cell carcinoma patients. The combination also demonstrated a median progression-free survival of 18.5 months, which appears to exceed the 56% objective response rate and 16.6-month median progression-free survival seen with Cabometyx plus Opdivo in the CHECKMATE-9ER trial. The company's strong financial position, with a 96.78% gross margin and minimal debt (0.09 debt-to-equity ratio), provides robust support for its ongoing clinical development programs.
From a safety perspective, 80% of patients treated with the zanzalitinib-Opdivo combination experienced grade 3 or higher treatment-related adverse events, with 8% discontinuing therapy due to treatment-related adverse events. This compares to the Cabometyx-Opdivo combination, where 67% of patients experienced grade 3 or higher treatment-related adverse events and 27.5% discontinued treatment.
H.C. Wainwright believes these results reduce risk for the ongoing STELLAR-304 trial, which is evaluating zanzalitinib plus Opdivo versus Sutent in first-line clear cell renal cell carcinoma patients. Results from this trial are expected in the second half of 2025.
Based on the promising data, H.C. Wainwright increased its probability of approval for zanzalitinib in clear cell renal cell carcinoma to 60% from 50%, leading to the higher price target while maintaining its buy recommendation on Exelixis shares. The company's stock has demonstrated strong momentum with an 87.81% return over the past year. InvestingPro subscribers have access to 11 additional exclusive ProTips and comprehensive analysis through the Pro Research Report, offering deeper insights into Exelixis's financial health and growth potential.
In other recent news, Exelixis has reported notable developments in its financial and clinical endeavors. Exelixis announced impressive sales figures for its Cabometyx product, reaching $511 million, which marks a 36% year-over-year increase. This performance exceeded both Stifel's and consensus estimates, driven by a rise in total and new prescriptions. Stifel analysts responded by raising their price target for Exelixis to $38 while maintaining a Hold rating. Meanwhile, BofA Securities adjusted its price target for Exelixis to $46, reflecting slightly higher sales expectations for the zanza asset.
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Additionally, Citizens JMP analysts maintained a Market Outperform rating with a target of $47, following discussions with Exelixis management about strategic changes in trial endpoints for the STELLAR-303 colorectal cancer study. Exelixis also shared promising results from its STELLAR-002 trial, showing a 63% objective response rate for zanzalintinib in combination with nivolumab in advanced clear cell renal cell carcinoma. These findings, presented at the American Society of Clinical Oncology meeting, underscore the potential of zanzalintinib-based regimens.
Furthermore, Exelixis's strategic share repurchase activity, including a $289 million buyback in the first quarter of 2025, highlights management's confidence in the company's value. With $505 million remaining in repurchase authorization, this strategy is expected to support the company's stock stability.
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Written By: Investing.com
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