Exelixis (EXEL) offers balanced risk-reward ahead of several key catalysts, with its Zanzalintinib therapy well positioned for success in a non-clear cell renal cell carcinoma, or nccRCC, trial readout in the second half of 2026 that could lift the stock, UBS Securities said.

The brokerage said Zanzalintinib's expansion into additional indications will be critical to maintaining Exelixis' value after Cabometyx loses exclusivity. Even if the nccRCC readout is positive, UBS said there remains debate over whether Zanzalintinib can outperform Cabometyx in renal cell carcinoma.

The firm also said the therapy's potential launch in metastatic colorectal cancer remains another important catalyst, with the US Food and Drug Administration's target action date for the company's new drug application set for Dec. 3.

UBS models Q2 product revenue of $569 million, below the Visible Alpha consensus estimate of $584 million. The brokerage maintained its 2026 product revenue estimate of $2.3 billion, compared with the Visible Alpha consensus of $2.4 billion.

The firm raised its price target on Exelixis to $52 from $43 and reiterated its neutral rating.

Shares of Exelixis were up 3% in Thursday trading.

Price: 55.59, Change: +1.63, Percent Change: +3.02