Investing.com– Truist analysts have increased their price target (PT) for Exelixis Inc (NASDAQ:EXEL), reflecting greater confidence in the company’s growth prospects.
Exelixis, a biotechnology firm specializing in oncology treatments, continues to gain momentum with its flagship drug, Cabometyx, and its promising pipeline, Truist analysts said in a note.
The brokerage raised PT to $42 from $38 while retaining a “Buy” rating.
The analysts cited expanded sales potential for Cabometyx in treating neuroendocrine tumors (NET) as a key factor in the updated valuation. They now estimate peak sales for this indication to reach approximately $700 million, while Exelixis projects a potential market size of $1 billion.
Recent inclusion in the National Comprehensive Cancer Network (NCCN) guidelines has bolstered confidence in the drug’s broader uptake, analysts said.
Truist also highlighted Exelixis’ upcoming catalysts for Zanza, a newer therapy derived from Cabometyx. Zanza has three significant value-driving milestones anticipated in 2025, which could further enhance its growth outlook and justify additional upward revisions to the price target.
“While the biotech markets are choppy, we think investors will find comfort in the stability of EXEL’s revenue generating & growing base biz, layered with catalyst upsides, making this a very investable name in 2025, in our view,” analysts wrote