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Jefferies says ‘activist has a point’ on Exelixis R&D
The Fly

Jefferies says ‘activist has a point’ on Exelixis R&D

Jefferies analyst Akash Tewari notes that Farallon Capital Partners disclosed in a 13D that was filed after market close on Monday that is has a roughly 7.2% activist stake in Exelixis citing the view that the stock is "deeply undervalued" and also indicated that they’ve been in communication with management and the board to express the belief the company should rationalize R&D efforts, refresh its board, return capital to investors and improve investor communications. While the firm said it is Buy-rated on Exelixis given what it sees as "the IP upside," it understands the activist’s points on R&D and could see upside on cash flow from incremental R&D cuts. Jefferies has a Buy rating and $26 price target on Exelixis shares.

Published first on TheFly

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