Brookline Capital Markets analysts initiated coverage on Exelixis (NASDAQ:EXEL) with a Buy rating and a $40 price target, highlighting the biotechnology company’s potential for sustained revenue growth and product pipeline expansion.
Exelixis, a commercial-stage biotech firm, is expected to continue advancing its key therapies, Cabometyx and Cometriq, while benefiting from the ongoing development of Cotellic through its partnership with Genentech. Additionally, its promising early-stage pipeline could further drive long-term growth.
The company is projected to achieve a compound annual growth rate (CAGR) of 15% in total revenue over the next 7 to 10 years, potentially reaching $7.1 billion by 2033. This growth is underpinned by expanding indications for Cabometyx and the anticipated commercialization of a new pipeline product in the coming years. Total product sales are expected to rise to $6.7 billion by 2033, assuming successful execution of these plans.
While these estimates carry inherent risks typical of development-stage biotech companies, they reflect the significant upside potential of Exelixis’ strategy. On a probability and investment risk-adjusted basis, the company’s valuation could reach $40 per share within the next 12 to 18 months, according to the analysts.