Exelixis Rated Hold as Zanzalintinib CRC Outlook Remains Mixed; $54 Price Target Reaffirmed

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BMO Capital analyst David Lebowitz maintains a Hold rating on Exelixis with a $54 price target. The stance reflects mixed outlooks for zanzalintinib in colorectal cancer: while FDA approval is likely due to survival benefits and safety, missed endpoints may narrow the label and constrain sales. Combined with a mature franchise, approaching patent cliff, and developing pipeline, these factors justify a balanced view.

In a report released on September 11, David Lebowitz from BMO Capital maintained a Hold rating on Exelixis, with a price target of $54.00.

David Lebowitz has given his Hold rating due to a combination of factors surrounding Exelixis’s CRC program and overall franchise outlook. He views FDA approval of zanzalintinib in colorectal cancer as still likely, supported by a statistically significant overall survival benefit in the intent-to-treat population and a clean safety profile, but notes that the extended PDUFA timeline underscores heightened regulatory scrutiny.

At the same time, Lebowitz highlights the risk that the missed co-primary endpoint in patients without active liver metastases could lead to a narrower CRC label, constraining peak sales relative to more bullish scenarios. Combined with Exelixis’s solid but mature cash-generating franchise, an approaching patent cliff, and a still-developing “second act” pipeline, these mixed dynamics justify maintaining a balanced, Hold stance, with the price target kept unchanged at $54.

According to TipRanks, Lebowitz is an analyst with an average return of -3.7% and a 28.57% success rate. Lebowitz covers the Healthcare sector, focusing on stocks such as Ionis Pharmaceuticals, Alnylam Pharma, and BioMarin Pharmaceutical.

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