EXEL - Exelixis rated outperform at Credit Suisse on success of Cabometyx pipeline

• Credit Suisse has initiated Exelixis ( NASDAQ: EXEL ) with an outperform rating saying that its core medicine, Cabometyx (cabozantinib) is ma market leader and has growth potential with its pipeline.
• The firm has a $29 price target (67% upside based on Wednesday's close).
• Analyst Geoffrey Weiner said that based on talks with key opinion leaders, he believes Cabometyx sales could reach $2B by 2025.
• Credit Suisse's modeling values Cabometyx as providing $13/share through 2026, increasing to $23 if competition is held off to 2030.
• In the pipeline, "we believe there are multiple clinical catalysts to drive pipeline interest over the next one to two years," Weiner wrote.
• See why Seeking Alpha contributor Bret Jensen, who has a buy rating on Exelixis, says the biotech is undervalued .

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