Bank of America Securities analyst Tazeen Ahmad has reiterated their bullish stance on DNLI stock, giving a Buy rating yesterday.
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Tazeen Ahmad has given his Buy rating due to a combination of factors related to Denali’s transition into a commercial-stage biotech and the strength of Avlayah’s launch profile. The accelerated U.S. approval of Avlayah for pediatric Hunter syndrome, with a broad label that addresses both neurological and peripheral disease manifestations, underpins a sizable commercial opportunity that BofA estimates could reach roughly $525 million in peak sales.
The current indication already captures the majority of treated patients, with potential upside from label expansion into adults and concentrated prescriber centers that can be efficiently targeted by an in-place sales force. In addition, the approval de-risks the broader platform by boosting confidence in DNL126 for Sanfilippo syndrome and justifies higher probabilities of success and valuation, including PRV monetization, which together support the increased $31 price objective and the reiterated Buy rating.
DNLI’s price has also changed dramatically for the past six months – from $13.430 to $22.470, which is a 67.31% increase.