Update shared on 30 Nov 2025
Fair value Increased 0.87%The analyst price target for Exelixis has increased modestly, with the consensus now approaching $45. Analysts cite improving profit margins and positive commercial prospects for zanzalintinib following the latest quarterly results.
Analyst Commentary
Analyst sentiment on Exelixis remains a blend of optimism and caution following recent quarterly results and pipeline developments. Price targets have shifted higher overall, but some concerns linger regarding the company's commercial execution and future growth drivers.
Bullish Takeaways
- Bullish analysts are raising price targets, reflecting heightened expectations for Exelixis, with targets reaching as high as $51. This signals confidence in the company’s underlying fundamentals.
- Sentiment remains positive regarding the commercial potential of zanzalintinib in multiple tumor types. This is considered a key factor in long-term valuation.
- Recent coverage initiations and upgrades suggest the current share price may offer an appealing entry point, especially after recent pullbacks.
- Solid quarterly updates and effective execution in existing franchises, particularly with Cabometyx, position the company for continued, steady growth through the decade.
Bearish Takeaways
- Bearish analysts point to forecast adjustments and are trimming price targets due to perceived risks in the clinical and commercial rollout of key assets like zanzalintinib, especially given conservative market share assumptions.
- There are calls for caution regarding near-term upside, with some maintaining neutral outlooks pending clearer evidence of accelerated pipeline progress or commercial inflection.
- Concerns linger over market saturation and patent expiry timelines, with expectations for cabozantinib growth moderating towards the end of the decade.
What's in the News
- Exelixis raised its earnings guidance for fiscal year 2025, now expecting total revenues of $2.30 billion to $2.35 billion and net product revenues of $2.10 billion to $2.15 billion. This reflects increased confidence in future performance. (Company Guidance)
- The company announced a share repurchase program authorizing up to $750 million of stock buybacks, with $395.31 million already completed as of October 2025. (Corporate Announcement)
- Detailed results from the STELLAR-303 phase 3 pivotal trial showed a 20% reduction in the risk of death for metastatic colorectal cancer patients treated with zanzalintinib in combination with atezolizumab. These results support further development of the candidate. (Clinical Trial Results)
- Subgroup analysis of the CABINET phase 3 trial demonstrated that CABOMETYX® maintains a favorable safety profile in advanced neuroendocrine tumors originating in the lungs or thymus. The therapy has received recent approvals in both the U.S. and Europe. (Research Update)
- Exelixis amended its collaboration agreement with Adagene to pursue development of an antibody-drug conjugate using Adagene's SAFEbody technology platform. This expansion enhances the company's strategic pipeline efforts. (Business Development)
Valuation Changes
- Consensus Analyst Price Target has risen slightly, increasing from $44.61 to $45.00.
- Discount Rate has moved up modestly, from 6.99% to 7.06%.
- Revenue Growth projection remains essentially flat, holding at approximately 11.21%.
- Net Profit Margin has increased meaningfully, moving from 37.68% to 40.00%.
- Future P/E ratio has risen marginally, increasing from 10.18x to 10.31x.
Disclaimer
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