Overview
H.C. Wainwright increased its price target on Exelixis (NASDAQ: EXEL) to $52.00 from $49.00 while maintaining a Buy rating, attributing the change to an updated discounted cash flow model. The broker’s new target aligns closely with a Fair Value assessment that indicates the company may be undervalued, with a PEG ratio reported at 0.32.
Fiscal 2026 guidance drives valuation update
The analyst action followed Exelixis’s publication of fiscal year 2026 guidance. Management projected total revenues in a range between $2.525 billion and $2.625 billion. Within that top-line expectation, net product revenues were forecast at $2.325 billion to $2.425 billion.
On the cost side, Exelixis provided ranges for several major line items: cost of goods sold is expected to be 3.5-4.5 percent; research and development expenses are projected at $875-925 million; and selling, general and administrative expenses are estimated at $575-625 million. The guidance also included an anticipated effective tax rate of 21-23 percent for fiscal 2026.
Context from recent operating updates
The guidance comes after Exelixis released preliminary fiscal 2025 figures that were in line with consensus expectations overall, though the fiscal 2026 outlook was noted as slightly below consensus by roughly 1.5 percent. Separately, the company preannounced fiscal 2025 operating results indicating fourth-quarter net product revenue that fell approximately 2.5 percent below consensus estimates.
Analyst landscape and strategic moves
Other broker activity has been mixed. Truist Securities raised its price target to $51 and kept a Buy rating, while Citizens reiterated a Market Outperform rating with a $50 target. Morgan Stanley increased its price target to $48 but downgraded the stock from Overweight to Equalweight. H.C. Wainwright’s decision to raise its target while maintaining a Buy reflects a continued positive view balanced with updated valuation inputs.
In addition to financial guidance and analyst coverage, Exelixis announced a collaboration with Natera to run a phase 3 colorectal cancer trial using Natera’s Signatera test to identify eligible patients. That partnership was highlighted among recent strategic developments.
Takeaway
H.C. Wainwright’s price target revision to $52 is grounded in an updated DCF valuation and follows Exelixis’s detailed fiscal 2026 guidance. The company’s revenue and expense ranges, along with recent operating results and external analyst actions, frame the current market view of the stock. Observers will likely weigh the guidance ranges and the slight shortfall versus consensus when assessing near-term expectations for Exelixis.