Exelixis (EXEL) shares are likely to trade in line with peers as its cancer drug cabozantinib, used in kidney cancer and neuroendocrine tumors, continues to post steady growth, while most near-term catalysts are already reflected in the stock, RBC Capital Markets said Wednesday in a report.

Exelixis' 2026 outlook assumes continued cabozantinib growth, though it still has concerns about erosion in renal-cell carcinoma and limited chances for further gains in neuroendocrine tumors, the report said. Cabozantinib revenue in Q1 rose about 1.5% from the previous quarter and 8% from a year earlier, helped by the highest number of patient starts to date, RBC said.

Exelixis is broadening development of zanzalintinib, its next-generation cancer therapy, through new studies and combination regimens, RBC said. Still, a meaningful revenue contribution from zanzalintinib isn't expected until 2027, even with a potential approval in late-line colorectal cancer this year, the report said.

RBC maintained its sector perform rating on Exelixis stock with a price target of $43.

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