Denali Therapeutics (NASDAQ:DNLI) Coverage Initiated by Analysts at HC Wainwright

Key Points

• HC Wainwright initiated coverage of Denali Therapeutics with a “strong buy” rating and forecast ongoing losses through 2030, narrowing to $0.14 per share that year.
• Analyst sentiment is broadly positive: MarketBeat reports a “Moderate Buy” consensus and a $36.15 average price target, with 12 analysts rating the stock Buy.
• Denali reported quarterly EPS of $0.37, beating analysts’ expected loss of $0.27, and revenue of $17.78 million versus $12.67 million expected.

Equities researchers at HC Wainwright initiated coverage on shares of Denali Therapeutics (NASDAQ:DNLI - Get Free Report) in a research note issued on Wednesday, Zacks reports. The firm set a "strong-buy" rating on the stock. HC Wainwright also issued estimates for Denali Therapeutics' Q4 2026 earnings at ($0.62) EPS, FY2026 earnings at ($1.61) EPS, Q1 2027 earnings at ($0.60) EPS, Q2 2027 earnings at ($0.59) EPS, Q3 2027 earnings at ($0.57) EPS, Q4 2027 earnings at ($0.53) EPS, FY2027 earnings at ($2.38) EPS, FY2028 earnings at ($1.77) EPS, FY2029 earnings at ($1.51) EPS and FY2030 earnings at ($0.14) EPS.

Several other research analysts have also commented on DNLI. Robert W. Baird set a $34.00 price target on shares of Denali Therapeutics in a report on Friday, August 7th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Denali Therapeutics in a research note on Thursday, October 15th. BTIG Research reiterated a "buy" rating and set a $39.00 price objective on shares of Denali Therapeutics in a research note on Wednesday. Morgan Stanley increased their price objective on shares of Denali Therapeutics from $40.00 to $42.00 and gave the stock an "overweight" rating in a research report on Wednesday. Finally, JPMorgan Chase & Co. initiated coverage on shares of Denali Therapeutics in a research note on Monday, July 13th. They issued an "overweight" rating and a $29.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $36.15.

Denali Therapeutics Stock Performance

Denali Therapeutics stock opened at $19.72 on Wednesday. The stock's 50-day moving average is $20.25 and its 200-day moving average is $21.26. The company has a market cap of $3.16 billion, a price-to-earnings ratio of -11.40 and a beta of 1.08. The company has a debt-to-equity ratio of 0.01, a current ratio of 6.21 and a quick ratio of 8.32. Denali Therapeutics has a 12 month low of $13.75 and a 12 month high of $27.30.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) last issued its earnings results on Tuesday, November 3rd. The company reported $0.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.27) by $0.64. The firm had revenue of $17.78 million for the quarter, compared to analysts' expectations of $12.67 million. During the same quarter in the previous year, the firm posted ($0.74) EPS. Equities analysts anticipate that Denali Therapeutics will post -2.70 earnings per share for the current year.

Insider Buying and Selling at Denali Therapeutics

In other news, insider Alexander O. Schuth sold 2,768 shares of the stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $23.44, for a total value of $64,881.92. Following the completion of the sale, the insider owned 278,995 shares in the company, valued at approximately $6,539,642.80. This trade represents a 0.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 9.70% of the stock is owned by insiders.

Hedge Funds Weigh In On Denali Therapeutics

Institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. acquired a new position in Denali Therapeutics in the 2nd quarter worth $360,759,000. Dimensional Fund Advisors LP boosted its position in Denali Therapeutics by 13.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,692,175 shares of the company's stock valued at $51,687,000 after buying an additional 317,872 shares during the last quarter. ADAR1 Capital Management LLC boosted its position in Denali Therapeutics by 3,490.9% in the 1st quarter. ADAR1 Capital Management LLC now owns 1,871,455 shares of the company's stock valued at $35,932,000 after buying an additional 1,819,339 shares during the last quarter. Bank of America Corp DE acquired a new stake in shares of Denali Therapeutics during the second quarter valued at about $31,660,000. Finally, Defilade Capital Management L.P. grew its stake in shares of Denali Therapeutics by 107.1% during the first quarter. Defilade Capital Management L.P. now owns 1,359,969 shares of the company's stock valued at $26,111,000 after acquiring an additional 703,256 shares in the last quarter. Hedge funds and other institutional investors own 92.92% of the company's stock.

Key Headlines Impacting Denali Therapeutics

Here are the key news stories impacting Denali Therapeutics this week:

• Positive Sentiment: Denali’s Q3 earnings beat expectations, while Avlayah sales reportedly rose nearly fivefold and reimbursement coverage expanded. The company also has several pipeline catalysts approaching, giving investors reasons to focus on future growth. Zacks article
• Positive Sentiment: Morgan Stanley raised its price target to $42 and maintained an Overweight rating; Wedbush also lifted its target, to $24, with an Outperform rating. These target increases suggest those analysts see potential upside. Analyst target report
• Neutral Sentiment: HC Wainwright’s estimates project ongoing losses in the coming years, including a $0.62-per-share loss in Q4 2026, but a narrower $0.14 loss in 2030. These are analyst forecasts, not company results, and indicate that a path toward profitability may take time.
• Negative Sentiment: Despite the earnings beat, investors may weigh Denali’s continuing expected losses and valuation against its commercial growth and pipeline prospects. Yahoo Finance article

About Denali Therapeutics

Denali Therapeutics Inc is a biopharmaceutical company focused on discovering and developing therapies for patients with neurodegenerative diseases. The company's research programs target conditions including Parkinson's disease, Alzheimer's disease, amyotrophic lateral sclerosis, and lysosomal storage disorders.

Denali uses its blood-brain barrier transport technology, known as the Transport Vehicle platform, to design medicines intended to deliver therapeutic proteins and other biologic treatments into the central nervous system.

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