Exelixis, Inc. (NASDAQ:EXEL) is set to release its second-quarter financial results after the markets close on Wednesday, August 3rd. Leerink analyst Michael Schmidt expects strong cabozantinib product sales in 2Q16 based on initial weekly IMS prescription data which indicate 435 weekly Cabometyx TRx in 2Q.

Schmidt predicts a solid game change for the second earnings quarter, as the data will include for the first time product launch sales for newly FDA approved Cabometyx- a kinase inhibitor drug Exelixis has created to treat patients with advanced renal cell carcinoma (RCC). Because of this, Schmidt predicts an upside compared to Street estimates. The analyst finds “Cabo” “well-positioned to capture significant market share,” with more modest expectations for second kinase inhibitor melanoma drug Cotellic, focused more on an outlook with long-term potential.

Ahead of earnings report, Schmidt reiterates an Outperform rating on EXEL with a $10 price target.

As usual, we find it important to provide a track record for an analyst when reporting on new notes to give key perspective on the effect it has on stock performance. According to TipRanks, Michael Schmidt has earned a ranking of #691 out of 4,057 analysts, upholding a 52% success rate and garnering a positive average in annual returns of 5.3% per every recommendation he offers.

TipRanks analytics indicate EXEL to be a Strong Buy, with 3 out of 4 analysts polled in the last 3 months issuing a Buy, and only 1 remaining indicating a Hold rating on the stock. The average 12-month consensus price target is $7.67, marking an 8% downside from where the stock is currently trading.