In a report released yesterday, Jason Gerberry from Bank of America Securities maintained a Hold rating on Exelixis, with a price target of $45.00.
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Jason Gerberry has given his Hold rating due to a combination of factors influencing Exelixis’s market position and future prospects. The upcoming presentation of the zanza STELLAR-303 CRC data at ESMO is a significant event, yet the competitive landscape poses challenges. While the zanza-CRC regimen appears potentially approvable, the forecasted peak US sales are modest, and any substantial stock movement would require extraordinary data outcomes.
Exelixis faces a competitive market with established treatments like Lonsurf and bevacizumab, and the zanza regimen does not currently demonstrate a superior overall survival benefit. The anticipated sales for zanza, even in a best-case scenario, are expected to be lower than consensus forecasts. Additionally, the limited catalysts post-STELLAR-303 and the competitive pressures on the Cabo sales base contribute to the Hold rating, as the potential for significant upside is constrained.