Barclays Rates Exelixis as Equal Weight With $40 Price Target

Summary

Exelixis, Inc. (NASDAQ:EXEL) has been rated Equalweight by Barclays, which initiated coverage on September 17. The firm set a price target of $40 for the shares, highlighting Exelixis as one of the most undervalued NASDAQ stocks. Barclays forecasts that cabozantinib, Exelixis’ key product, will see mid-single digit growth until its patent expiration.MSN

Impact Analysis

So basically, Barclays is playing it safe with Exelixis, rating it Equalweight and setting a $40 target. This is interesting because they highlight the stock as undervalued, yet they aren’t bullish enough to go beyond Equalweight. The real story here might be about cabozantinib’s growth prospects—Barclays sees mid-single digit growth until patent expiration, which could be a red flag for long-term investors. Everyone’s focused on the undervaluation, but the market might be missing the potential revenue gap post-patent. Competitors could capitalize on this, especially if Exelixis doesn’t have a strong pipeline to fill the void. The trade here could be watching for any signs of new product development or strategic partnerships that might change the growth narrative. If Exelixis can bridge the gap, there’s upside potential beyond the current cautious stance.MSN+ 2