EXEL Should I Buy
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Exelixis Inc (EXEL) is not a strong buy at this time for a beginner, long-term investor with $50,000-$100,000 available for investment. While the company has shown solid financial performance and positive developments in its drug pipeline, the technical indicators, options sentiment, and mixed analyst ratings suggest a cautious approach. The stock's recent price trend and lack of strong proprietary trading signals further support a hold recommendation.
The MACD is negatively expanding (-0.328), indicating bearish momentum. RSI is at 32.468, which is neutral but nearing oversold territory. Moving averages are converging, showing no clear trend. The stock is trading below the pivot level (42.88) and closer to its support level (S1: 40.527), suggesting potential downside risk.
FDA approval of zanzalintinib for metastatic colorectal cancer, with a final decision expected by December
Strong financial performance in 2025, including a 7% revenue increase and EPS growth of 57.9%.
Expanded partnerships with Takeda and Ipsen for cabozantinib and collaboration with Natera for clinical trials.
Competitive pressures from Merck's HIF-2alpha inhibitors, which could lead to further price declines.
Limited high-impact catalysts seen in 2026, as noted by analysts.
Valuation concerns due to limited patent life on Cabometyx and uncertainty around follow-on assets.
In Q4 2025, Exelixis reported a 5.63% YoY revenue increase to $598.66 million, a 74.84% YoY net income increase to $244.53 million, and an 83.33% YoY EPS increase to $0.88. However, gross margin dropped slightly to 95.58%, down -0.93% YoY.
Analyst sentiment is mixed. RBC Capital lowered its price target to $43 from $46 due to competitive pressures. H.C. Wainwright raised its target to $54, citing upcoming catalysts. However, BofA downgraded the stock to Underperform with a $41 price target, citing valuation concerns and limited catalysts. The average price target remains slightly above the current price, but the mixed ratings suggest uncertainty.
