EXEL
The bull case in one sentence
Exelixis is being framed as the kind of stock that keeps grinding higher in the background while everyone else chases shinier AI toys. The note says the company still looks undervalued even after a 13%+ post-Q1 move, thanks to stronger-than-expected operating performance.
Why the math is looking prettier
The big takeaway is that the business is doing the boring-but-beautiful stuff investors love:
- Q1 revenue climbed 10% year over year
- Growth was driven almost entirely by CABOMETYX demand
- Operating margin widened to 41.1% as costs fell
- Free cash flow remains strong, which is basically the corporate version of “money in, money out, and a lot left over”
That combo matters because it suggests this isn’t just a one-quarter sugar high. Exelixis is showing the kind of profitability that can keep supporting the stock even if the broader biotech mood gets a little moody.
Still room on the runway
The note keeps a Buy rating and tags a $57 target, implying about 13% upside from here. The analyst also leans on DCF and peer multiples to argue the valuation gap hasn’t closed yet — in other words, the market may have noticed the good news, but it hasn’t fully priced in the whole story.
Big picture
If you’re holding EXEL, this is the classic “fundamentals are outrunning the tape” setup. The stock already ran, sure — but the business is still earning the right to climb further.