TD Cowen analyst Brendan Smith has maintained their bullish stance on DNLI stock, giving a Buy rating on November 1.
Brendan Smith has given his Buy rating due to a combination of factors that indicate promising developments for Denali Therapeutics. One of the primary reasons is the company's plan to file for accelerated approval of DNL310 for mucopolysaccharidosis Type II by early 2025. This decision comes after the FDA's agreement to accept significant reductions in CSF levels of heparan sulfate as a surrogate endpoint. Additionally, positive Phase 2 data has demonstrated the efficacy of Denali's enzyme-conjugated TVs in crossing the blood-brain barrier and improving cognitive function, which strengthens the case for a broad label approval.
Furthermore, Denali's ongoing and future clinical trials add to the optimism. The fully enrolled Phase 2/3 ALS study with DNL343, expected to yield data in 2025, could serve as a significant catalyst for the company's growth. In parallel, Denali's progress with DNL126 in MPS IIIa, showing significant reductions in CSF levels of heparan sulfate and mild adverse events, suggests potential cross-application benefits due to similar mechanisms of action with MPS II. These strategic clinical advancements underpin Smith's positive outlook on Denali's stock.
In another report released on November 1, Jefferies also assigned a Buy rating to the stock with a $45.00 price target.
Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DNLI in relation to earlier this year.
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Denali Therapeutics (DNLI) Company Description:
Denali Therapeutics, Inc. is a biopharmaceutical company, which engages in the development and commercialization of a portfolio of product candidates for neurodegenerative diseases. Its product pipeline includes LRRK2, RIPK1, TREM2, and Tau. The company was founded by Ryan J. Watts, Marc Tessier-Lavigne, and Alexander Schuth on October 14, 2013 and is headquartered in San Francisco, CA.