Citizens has maintained its Market Outperform rating on Exelixis (NASDAQ:EXEL) and left its price target unchanged at $50.00, citing encouraging clinical evidence for the company’s investigational cancer therapy zanzalintinib. The research note identifies the zanzalintinib and atezolizumab combination as a key catalyst for the biotech, while also pointing to recent financial results that paint a mixed near-term picture.
Valuation and market position
The research firm noted that Exelixis carries a market capitalization of $11.57 billion and is trading below its InvestingPro Fair Value estimate. Citizens also pointed to a PEG ratio of 0.32 as a signal that the stock may be trading at a discount relative to its growth outlook.
Clinical data and therapeutic potential
Citizens highlighted data discussed at the ESMO 2025 meeting that provide context for the metastatic colorectal cancer, or mCRC, treatment landscape. The firm emphasized that in the third-line and beyond setting for non-MSIhigh, non-dMMR mCRC patients, treatment choices remain very limited and there is no clearly established standard of care.
Within that difficult-to-treat population, the combination of zanzalintinib and atezolizumab demonstrated a statistically significant overall survival benefit. Citizens described this result as effectively making immunotherapy available to a broader mCRC population for the first time.
The research note also underscored potential implications beyond mCRC, observing that efficacy in a hard-to-treat cancer could bode well for additional indications. Citizens added that Roche would have commercial interest in marketing atezolizumab in the new indication.
Recent financial performance
Exelixis reported fourth-quarter 2025 earnings that exceeded expectations on the bottom line while coming up slightly short on revenue. The company posted earnings per share of $0.97, surpassing the projected $0.80, a beat of 21.25 percent. Revenue for the quarter was $598.66 million, below the $604.56 million that had been expected.
Citizens noted these results as part of the company’s recent activity, highlighting that the EPS outperformance and the revenue miss together offer a nuanced view of Exelixis’s current financial health and operational performance.
Context and implications
Taken together, Citizens’ assessment rests on the clinical promise of zanzalintinib when combined with atezolizumab, the company’s current valuation metrics, and the latest quarterly results that show both strengths and areas for improvement. The firm’s maintained Market Outperform rating and $50.00 price target reflect its view that the clinical data and valuation combine to present an attractive investment case, while the quarter’s revenue shortfall and the limited treatment options in the relevant mCRC setting remain notable variables.