Wedbush Cuts Denali Therapeutics (NASDAQ:DNLI) Price Target to $23.00

Key Points

• Wedbush cut its price target for Denali Therapeutics to $23 (from $25) while maintaining an "outperform" rating, implying about a 14% upside from the recent $20.16 share price.
• The analyst consensus remains positive — a "Moderate Buy" with a consensus target of $34.42 — based on 16 analysts (1 Strong Buy, 13 Buy, 1 Hold, 1 Sell).
• Shares trade at $20.16 with a $3.2 billion market cap; Denali reported Q1 EPS of -$0.69 (beating estimates) and sell-side forecasts project -2.86 EPS for the current year.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) had its price target lowered by stock analysts at Wedbush from $25.00 to $23.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm presently has an "outperform" rating on the stock. Wedbush's price target would suggest a potential upside of 14.06% from the company's current price.

Other research analysts have also issued research reports about the company. Weiss Ratings restated a "sell (d-)" rating on shares of Denali Therapeutics in a research report on Monday, April 20th. Jefferies Financial Group reiterated a "buy" rating and issued a $40.00 price target on shares of Denali Therapeutics in a research report on Monday, March 2nd. HC Wainwright lifted their price target on Denali Therapeutics from $32.00 to $42.00 and gave the stock a "buy" rating in a research report on Thursday, March 26th. Robert W. Baird lifted their price target 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, The Goldman Sachs Group lifted their price target on Denali Therapeutics from $35.00 to $40.00 and gave the stock a "buy" rating in a research report on Thursday, March 26th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $34.42.

Denali Therapeutics Price Performance

Shares of Denali Therapeutics stock traded up $0.45 during trading on Friday, reaching $20.16. 179,417 shares of the stock traded hands, compared to its average volume of 1,711,578. The company has a market capitalization of $3.20 billion, a price-to-earnings ratio of -6.75 and a beta of 0.99. The business has a fifty day simple moving average of $20.19 and a two-hundred day simple moving average of $18.86. The company has a debt-to-equity ratio of 0.01, a current ratio of 9.16 and a quick ratio of 9.16. Denali Therapeutics has a 52-week low of $12.58 and a 52-week high of $23.77.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) last issued its quarterly earnings data on Monday, May 11th. The company reported ($0.69) earnings per share for the quarter, beating analysts' consensus estimates of ($0.73) by $0.04. During the same period in the previous year, the business posted ($0.78) EPS. Sell-side analysts expect that Denali Therapeutics will post -2.86 EPS for the current year.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Foresite Capital Management VI LLC purchased a new position in shares of Denali Therapeutics during the third quarter valued at approximately $14,520,000. AlphaQuest LLC boosted its position in shares of Denali Therapeutics by 224.1% during the third quarter. AlphaQuest LLC now owns 74,422 shares of the company's stock valued at $1,081,000 after buying an additional 51,458 shares during the period. Aberdeen Group plc boosted its position in shares of Denali Therapeutics by 23.4% during the third quarter. Aberdeen Group plc now owns 1,113,586 shares of the company's stock valued at $16,169,000 after buying an additional 210,835 shares during the period. Principal Financial Group Inc. boosted its position in shares of Denali Therapeutics by 18.5% during the third quarter. Principal Financial Group Inc. now owns 1,271,190 shares of the company's stock valued at $18,458,000 after buying an additional 198,207 shares during the period. Finally, Capricorn Fund Managers Ltd purchased a new position in shares of Denali Therapeutics during the fourth quarter valued at approximately $1,027,000. Hedge funds and other institutional investors own 92.92% of the company's stock.

About Denali Therapeutics

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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