Stephens Upgrades Exelixis (EXEL) Stock, Raises PT

Exelixis, Inc. (NASDAQ:EXEL) is one of the 10 Unstoppable Stocks to Buy According to Hedge Funds. On June 24, Stephens upgraded the company’s stock to “Overweight” from “Equal Weight” with a price objective of $60, an increase from the prior target of $29, as reported by The Fly. As per the analyst, the firm has a better understanding of how CABOMETYX will be able to retain market share in RCC, amidst competition and triplet combination trials in progress.

A team of scientists in lab coats surrounded by pharmaceuticals and medical equipment, researching a life-saving oncology-focused biotechnology.

This gives confidence regarding the franchise to retain its market share in RCC and add growth from NET. Furthermore, the firm highlighted that there is an increased probability of success for zanzalintinib getting FDA approval and market opportunity. In Q1 2025, Exelixis, Inc. (NASDAQ:EXEL) delivered strong financial performance thanks to the accelerating growth in CABOMETYX demand, new patient starts, and revenues.

In March, Exelixis, Inc. (NASDAQ:EXEL) announced that the US FDA approved CABOMETYX for the treatment of adult and pediatric patients who are aged 12 years and older with previously treated, unresectable, locally advanced or metastatic, well-differentiated pancreatic NET (pNET), and adult and pediatric patients aged 12 years and older with previously treated, unresectable, locally advanced or metastatic, well-differentiated extra-pancreatic NET (epNET).

Riverwater Partners, an investment management company, released its Q4 2024 investor letter. Here is what the firm said:

“Exelixis, Inc. (NASDAQ:EXEL) is a commercial-stage oncology company focused on developing therapies for cancer; its blockbuster commercial asset, Cabozantinib, derived ~$2B in global revenues in 2023 and 2024. The company also has a compelling early-stage pipeline. EXEL is not in the business of me-too programs and trying to get FDA results that are just good enough; FDA approval is the starting line, not the finish line. EXEL manages its portfolio of current and prospective drug candidates to drive innovation to improve the standard of care for patients, having found that generating differentiated data that moves the standard of care is what drives value for patients and EXEL over the long-term. The stock trades at a below-the-market multiple and a 25% discount to its five-year average forward valuation.”

While we acknowledge the potential of EXEL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than EXEL and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.