Investing.com– Truist analysts increased their price target (PT) by Exelixis Inc (NASDAQ: ), reflecting greater confidence in the company’s growth prospects.
Exelixis, a biotech company specializing in oncology treatments, continues to gain momentum with its lead drug, Cabometyx, and its promising pipeline, Truist analysts said in a note.
The brokerage raised the PT to $42 from $38, and maintained a “Buy” rating.
Analysts cited the expanded sales potential for Cabometyx in the treatment of neuroendocrine tumors (NETs) as a key factor in the updated estimate. They now estimate that peak sales for this indication will reach approximately $700 million, while Exelixis predicts a potential market size of $1 billion.
Recent inclusion in the National Comprehensive Cancer Network (NCCN) guidelines has bolstered confidence in the drug’s wider use, analysts say.
Truist also highlighted Exelixis’ upcoming catalysts for Zanza, a newer therapy derived from Cabometyx. Zanza has three significant value-driving milestones expected in 2025, which could further improve its growth prospects and warrant additional upward price target revisions.
“While biotech markets are volatile, we think investors will find comfort in the stability of EXEL’s revenue-generating and growing business, overlaid with catalyst upside, making this name a very worthwhile investment in 2025, in our view,” the analysts wrote.
