Denali Therapeutics (NASDAQ:DNLI) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Denali Therapeutics (NASDAQ:DNLI) had its price objective raised by equities researchers at Morgan Stanley from $40.00 to $42.00 in a research report issued on Wednesday, Benzinga reports. The brokerage presently has an “overweight” rating on the stock. Morgan Stanley‘s target price would suggest a potential upside of 96.99% from the company’s previous close.

DNLI has been the subject of several other research reports. BTIG Research reissued a “buy” rating and issued a $39.00 price objective on shares of Denali Therapeutics in a report on Wednesday. UBS Group upped their price objective on shares of Denali Therapeutics from $25.00 to $34.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Wall Street Zen upgraded Denali Therapeutics from a “sell” rating to a “hold” rating in a research report on Saturday, October 24th. Wedbush lifted their price target on Denali Therapeutics from $23.00 to $24.00 and gave the company an “outperform” rating in a research note on Wednesday. Finally, Robert W. Baird set a $34.00 price target on Denali Therapeutics in a report on Friday, August 7th. Thirteen 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. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $36.15.

Denali Therapeutics Stock Performance

Shares of Denali Therapeutics stock traded up $1.87 on Wednesday, reaching $21.32. 2,557,427 shares of the stock were exchanged, compared to its average volume of 1,725,242. The company has a quick ratio of 8.32, a current ratio of 8.37 and a debt-to-equity ratio of 0.01. Denali Therapeutics has a twelve month low of $13.75 and a twelve month high of $27.30. The firm has a market capitalization of $3.41 billion, a price-to-earnings ratio of -7.52 and a beta of 1.08. The business has a 50 day moving average price of $20.42 and a two-hundred day moving average price of $21.24.

Denali Therapeutics (NASDAQ:DNLI) last released its quarterly earnings data on Tuesday, November 3rd. The company reported $0.37 earnings per share 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 analyst estimates of $12.67 million. During the same quarter in the previous year, the company earned ($0.74) EPS. Analysts anticipate that Denali Therapeutics will post -2.70 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Alexander O. Schuth sold 2,768 shares of the firm’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $23.44, for a total value of $64,881.92. Following the transaction, the insider directly owned 278,995 shares of the company’s stock, 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 SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 9.70% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Denali Therapeutics

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DNLI. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Denali Therapeutics in the 2nd quarter valued at $26,000. Global Retirement Partners LLC purchased a new position in Denali Therapeutics during the 2nd quarter worth $28,000. Nykredit A S acquired a new position in Denali Therapeutics in the second quarter valued at $38,000. Allworth Financial LP acquired a new stake in shares of Denali Therapeutics during the second quarter worth about $47,000. Finally, Manchester Capital Management LLC boosted its stake in shares of Denali Therapeutics by 5,505.6% during the third quarter. Manchester Capital Management LLC now owns 2,018 shares of the company’s stock worth $42,000 after buying an additional 1,982 shares during the period. 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: 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.

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.