Denali Therapeutics (NASDAQ:DNLI) Price Target Raised to $42.00

Key Points

• Morgan Stanley raised its price target to $42 from $40 and maintained an “overweight” rating, implying about 97% upside from the prior close. Analysts’ consensus target is $36.15, with an overall “Moderate Buy” rating.
• Denali reported quarterly revenue of $17.78 million, above the $12.67 million consensus, and EPS of $0.37 versus analysts’ expected loss of $0.27. The article notes that reported net income included a one-time gain from selling a Priority Review Voucher.
• AVLAYAH revenue reached $17.8 million in its second full commercial quarter, and Denali expects fourth-quarter revenue of $30 million to $32 million. The company also has $1.0 billion in cash and expects data in 2027 from five TransportVehicle programs.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) had its price objective hoisted by analysts at Morgan Stanley from $40.00 to $42.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The firm presently has an "overweight" rating on the stock. Morgan Stanley's target price points to a potential upside of 96.99% from the stock's previous close.

Other analysts have also recently issued research reports about the company. UBS Group increased their target price on Denali Therapeutics from $25.00 to $34.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Deutsche Bank Aktiengesellschaft upped their price target on Denali Therapeutics from $31.00 to $35.00 and gave the stock a "buy" rating in a research note on Thursday, July 16th. B. Riley Financial increased their price objective on shares of Denali Therapeutics from $30.00 to $35.00 and gave the company a "buy" rating in a report on Tuesday, August 25th. Robert W. Baird set a $34.00 price objective on shares of Denali Therapeutics in a research report on Friday, August 7th. Finally, Wedbush boosted their target price on shares of Denali Therapeutics from $23.00 to $24.00 and gave the stock an "outperform" rating in a report on Wednesday. Thirteen equities research analysts have rated the stock with 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 has an average rating of "Moderate Buy" and a consensus price target of $36.15.

Denali Therapeutics Price Performance

Shares of NASDAQ DNLI traded up $1.87 during midday trading on Wednesday, reaching $21.32. The stock had a trading volume of 2,557,427 shares, compared to its average volume of 1,725,242. The stock has a 50-day moving average of $20.42 and a 200-day moving average of $21.24. The company has a debt-to-equity ratio of 0.01, a quick ratio of 8.32 and a current ratio of 8.37. The company has a market capitalization of $3.41 billion, a price-to-earnings ratio of -7.52 and a beta of 1.08. 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 quarterly 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 business had revenue of $17.78 million during the quarter, compared to analysts' expectations of $12.67 million. During the same quarter in the previous year, the company posted ($0.74) EPS. As a group, research analysts anticipate that Denali Therapeutics will post -2.70 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Alexander O. Schuth sold 2,857 shares of the company's stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $25.07, for a total transaction of $71,624.99. Following the sale, the insider directly owned 281,763 shares of the company's stock, valued at $7,063,798.41. This represents a 1.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 9.70% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Denali Therapeutics

Several institutional investors have recently bought and sold shares of DNLI. Bank of America Corp DE grew its position in shares of Denali Therapeutics by 21.7% in the 1st quarter. Bank of America Corp DE now owns 1,134,183 shares of the company's stock worth $21,776,000 after buying an additional 202,039 shares during the last quarter. Legal & General Group Plc purchased a new stake in Denali Therapeutics during the second quarter valued at approximately $2,879,000. Great Lakes Advisors LLC purchased a new stake in Denali Therapeutics during the second quarter valued at approximately $3,731,000. Engineers Gate Manager LP boosted its stake in Denali Therapeutics by 256.5% in the second quarter. Engineers Gate Manager LP now owns 57,430 shares of the company's stock valued at $1,477,000 after acquiring an additional 41,320 shares in the last quarter. Finally, E. Ohman J or Asset Management AB acquired a new stake in Denali Therapeutics in the second quarter valued at approximately $4,115,000. Institutional investors own 92.92% of the company's stock.

Key Stories Impacting Denali Therapeutics

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

• Positive Sentiment: AVLAYAH net product revenue reached $17.8 million in its second full commercial quarter, and Denali expects fourth-quarter revenue of $30 million to $32 million, signaling rapid growth. The company also said its potential Sanfilippo syndrome type A treatment, zafinofusp, remains on track for a 2027 BLA submission. Denali Q3 2026 financial results and business highlights
• Positive Sentiment: Analyst support strengthened: Wedbush raised its price target from $23 to $24 and maintained an “outperform” rating, while BTIG reaffirmed “buy” with a $39 target. Wedbush recommendations BTIG Research recommendations
• Positive Sentiment: Quarterly revenue exceeded consensus estimates, and the reported per-share loss was narrower than Zacks’ estimate and improved from a year earlier. Zacks Q3 results coverage
• Neutral Sentiment: Denali ended the quarter with $1.0 billion in cash, cash equivalents and marketable securities. It expects data in 2027 from five TransportVehicle programs, offering several potential future catalysts. Company results and pipeline update
• Negative Sentiment: The $70.1 million net income reported for the quarter included a one-time $194 million gain from selling a Priority Review Voucher. That makes the headline profit less indicative of recurring results; the business still reported a per-share loss in earnings coverage.

Denali Therapeutics Company Profile

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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