Jefferies analyst Akash Tewari notes that Farallon Capital Partners disclosed in a 13D that was filed after market close on Monday that is has a roughly 7.2% activist stake in Exelixis citing the view that the stock is "deeply undervalued" and also indicated that they’ve been in communication with management and the board to express the belief the company should rationalize R&D efforts, refresh its board, return capital to investors and improve investor communications. While the firm said it is Buy-rated on Exelixis given what it sees as "the IP upside," it understands the activist’s points on R&D and could see upside on cash flow from incremental R&D cuts. Jefferies has a Buy rating and $26 price target on Exelixis shares.
Published first on TheFly
See today’s best-performing stocks on TipRanks >>
Read More on EXEL:
- Exelixis announces $550M share repurchase program
- Exelixis initiated with an Overweight at Wells Fargo
- Exelixis says Phase 3 CONTACT-03 study did not meet its primary endpoint
- Bristol-Myers’ Opdivo and Exelixis’ Cabometyx show durable survival in carcinoma
- Exelixis, Sairopa announce FDA clearance for ADU-1805 IND application
Questions or Comments about the article? Write to editor@tipranks.com