Exelixis (EXEL) Rated Equalweight by Barclays Amid Cancer Drug Outlook

Exelixis, Inc. (NASDAQ:EXEL) ranks among the most undervalued NASDAQ stocks to buy now. On September 17, Barclays began coverage of Exelixis, Inc. (NASDAQ:EXEL), rating it Equalweight and setting a price target of $40 on the company’s shares. The firm forecasts cabozantinib, Exelixis’ major value driver, will climb in the mid-single digits until its patent expires in 2029.

Barclays predicts overall revenue for 2029 to be around 8% lower than consensus, owing mostly to decreased sales contribution expectations from Exelixis, Inc. (NASDAQ:EXEL) pipeline products. Based on the current sales trajectory of cabozantinib, the firm sees possible downside risks to both its own and consensus expectations.

Meanwhile, Zanzalintinib, Exelixis’ key pipeline candidate, has the potential to improve colorectal cancer and non-clear cell renal carcinoma treatments in the near future. However, Barclays believes that zanzalintinib will find it difficult to proceed to earlier treatment lines in colorectal cancer due to the competitive landscape.

Exelixis, Inc. (NASDAQ:EXEL) focuses on developing targeted cancer treatments. The company specializes in molecular therapies that treat difficult-to-treat cancers by targeting particular mutations in the genome.

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Disclosure: None. This article is originally published at Insider Monkey.