Exelixis' (EXEL) clinical trials evaluating Zanzalintinib in various types of cancer are highly likely to succeed, RBC Capital Markets analysts said in a Friday note.

Analysts said that indications of ZanzaLantinib, including for colorectal cancer, have the potential to achieve $2.5 billion in sales by 2035.

RBC said that the company has built an extensive and low clinical risk pipeline for ZanzaLantinib, and while a single indication may not capture over $1 billion in sales, it has seven programs that are set to provide business stability into the next decade.

"We think the current price is already baking in a significant amount of success while discounting both commercial and clinical risks - so we expect shares to trade in line," analysts said.

RBC retained a sector perform rating on the stock and increased its price target to $51 from $45.

Price: 59.61, Change: +0.59, Percent Change: +1.00