Exelixis price target raised to $42 from $33 at Guggenheim

Guggenheim analyst Michael Schmidt raised the firm’s price target on Exelixis (EXEL) to $42 from $33 and keeps a Buy rating on the shares. Late-stage pipeline asset zanzalintinib offers “potential upside optionality in the context of low Street expectations,” says the analyst, who thinks the STELLAR-303 Phase 3 topline results this year will be the first “domino” to fall and establish directional sentiment on subsequent Phase 3 opportunities. The firm is updating its model to include 40%-60% odds of success-adjusted estimates for zanza, which it thinks could potentially generate about $3.2B in U.S. peak sales “conservatively” on an un-adjusted basis.