Leerink Partners Cuts Denali Therapeutics (NASDAQ:DNLI) Price Target to $35.00

Key Points

• Leerink Partners cut its price target on Denali Therapeutics from $40 to $35 while maintaining an "outperform" rating, implying roughly a 70.65% upside from current levels.
• MarketBeat shows a consensus of "Moderate Buy" (2 Strong Buy, 13 Buy, 1 Hold, 1 Sell) and several firms recently raised targets—Morgan Stanley to $42 and Stifel to $41; DNLI traded near $20.51 with a market cap of about $3.25 billion.
• Institutional ownership is very high at 92.92%, with large stake increases from Pictet and T. Rowe Price, and Denali remains a clinical-stage biopharma focused on CNS programs including an LRRK2 inhibitor for Parkinson's and an anti-TREM2 antibody for Alzheimer's.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) had its price target cut by equities research analysts at Leerink Partners from $40.00 to $35.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Leerink Partners' price objective suggests a potential upside of 70.65% from the company's current price.

DNLI has been the topic of a number of other reports. Morgan Stanley lifted their price objective on Denali Therapeutics from $40.00 to $42.00 and gave the stock an "overweight" rating in a research report on Thursday, March 26th. UBS Group assumed coverage on Denali Therapeutics in a research report on Wednesday, January 7th. They issued a "buy" rating on the stock. Wolfe Research assumed coverage on Denali Therapeutics in a research report on Monday, February 23rd. They issued a "peer perform" rating on the stock. Robert W. Baird lifted their price objective on Denali Therapeutics from $32.00 to $34.00 and gave the stock an "outperform" rating in a research report on Tuesday, April 7th. Finally, Stifel Nicolaus lifted their price objective on Denali Therapeutics from $34.00 to $41.00 and gave the stock a "buy" rating in a research report on Thursday, March 26th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $35.00.

Denali Therapeutics Trading Up 1.9%

Denali Therapeutics stock traded up $0.38 during trading hours on Wednesday, reaching $20.51. The company had a trading volume of 67,142 shares, compared to its average volume of 1,694,436. The company has a debt-to-equity ratio of 0.01, a current ratio of 9.16 and a quick ratio of 9.16. The company has a 50-day moving average price of $20.22 and a 200 day moving average price of $18.59. The firm has a market cap of $3.25 billion, a price-to-earnings ratio of -6.91 and a beta of 1.10. Denali Therapeutics has a 12-month low of $12.58 and a 12-month high of $23.77.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) last announced its quarterly earnings results on Thursday, February 26th. The company reported ($0.73) EPS for the quarter, topping analysts' consensus estimates of ($0.75) by $0.02. During the same period in the previous year, the firm earned ($0.67) earnings per share. Equities analysts forecast that Denali Therapeutics will post -2.86 earnings per share for the current year.

Institutional Investors Weigh In On Denali Therapeutics

Several hedge funds have recently made changes to their positions in the company. Pictet Asset Management Holding SA boosted its stake in Denali Therapeutics by 92.5% during the first quarter. Pictet Asset Management Holding SA now owns 2,558,865 shares of the company's stock worth $48,439,000 after acquiring an additional 1,229,757 shares in the last quarter. Contravisory Investment Management Inc. bought a new position in shares of Denali Therapeutics during the first quarter valued at approximately $277,000. Groupama Asset Managment increased its stake in shares of Denali Therapeutics by 11.7% during the fourth quarter. Groupama Asset Managment now owns 151,591 shares of the company's stock valued at $2,503,000 after purchasing an additional 15,833 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its stake in shares of Denali Therapeutics by 28.7% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 7,254,132 shares of the company's stock valued at $119,766,000 after purchasing an additional 1,615,565 shares in the last quarter. Finally, Invesco Ltd. increased its stake in shares of Denali Therapeutics by 17.0% during the fourth quarter. Invesco Ltd. now owns 291,936 shares of the company's stock valued at $4,820,000 after purchasing an additional 42,469 shares in the last quarter. 92.92% of the stock is currently owned by institutional investors.

Denali Therapeutics Company Profile

Denali Therapeutics is a clinical‐stage biopharmaceutical company focused on developing therapies for neurodegenerative diseases. The company's research leverages a proprietary Blood–Brain Barrier Transport Vehicle (TV) platform designed to enable large molecules, including antibodies and enzymes, to penetrate the central nervous system. Denali's approach includes small molecules, monoclonal antibodies and gene therapy candidates aimed at key drivers of disorders such as Alzheimer's disease, Parkinson's disease, amyotrophic lateral sclerosis (ALS) and frontotemporal dementia.

Among Denali's lead programs is an orally delivered leucine‐rich repeat kinase 2 (LRRK2) inhibitor for Parkinson's disease, and an anti‐TREM2 antibody designed to modulate microglial activity in Alzheimer's patients.

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