H.C. Wainwright analyst Robert Burns has reiterated their bullish stance on EXEL stock, giving a Buy rating on October 25.
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Robert Burns has given his Buy rating due to a combination of factors including the promising results from the Phase 3 STELLAR-303 trial. The trial demonstrated that the combination of zanzalintinib and atezolizumab showed a significant improvement in overall survival compared to Stivarga in patients with metastatic colorectal cancer. Specifically, the combination achieved a median overall survival of 10.9 months compared to 9.4 months for Stivarga, translating to a 20% reduction in the risk of death.
Despite concerns regarding the safety profile, with a higher rate of treatment-related deaths in the combination group, the efficacy data supports the potential success of the treatment. The valuation of Exelixis is also favorable, with a discounted cash flow analysis estimating a firm value of approximately $12.1 billion, leading to a 12-month price target of $46 per share. However, risks such as commercial challenges with Cabometyx and potential generic competition remain considerations.
In another report released on October 25, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $44.00 price target.